Great post, Ex Blockman! Although it saddens me that we had some sellers, not just because it delayed the squeeze but because they will regret the decision, but it feels like the foundation of this strategy is stronger than ever. A few days ago I wrote this post to the CDIV board:
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Posted by: gwagon Date: Wednesday, July 07, 2010 10:51:52 PM
In reply to: None Post # of 142514
Many times it has been written on this board when there is any selling, that "it is fine" because the shares are now in "stronger hands". For those that may be nervous, stop and think about it. The strong hands aren't just the ones that don't flip. No, these hands are so strong that they will have the fortitude to HOLD ON even when the CDIV pps goes UP. Think about that.
The stage is set so that you are so very uncomfortable. You are angry with the team, the MM's and especially yourself. Maybe you are down so far now that at this point the only thing you can do is wait it out...at least until you are back to even. When the price finally does move, you'll be so incredibly relieved that you have your original investment back that you will dump everything as fast as you can and heave a sigh of relief. Don't you see the big picture? Do you see how you will have reacted "according to plan"? Step back and really study the whole picture, but WITHOUT a timeline. Don't allow your expectations to sabotage the opportunity of a lifetime!
The squeeze will no doubt come when we LEAST expect it. After all, isn't that usually the way the best things in life show up?
GO CDIV!!
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I just wanted to underscore the main point of the post. Correct me if I am wrong, but it would seem that the MOST critical point in the execution of this strategy will be when the price moves up substantially. How substantial that move is, will be a subjective issue, and for many it is directly proportional to their average price. There may be many that have managed to quell their insecurity and have been able to stomach the last few months. However, I think it is equally important to be able to handle the RISE as well. I can't help but feel that for some, this will be as emotional excruciating as the drop in price because they are going to want to SELL!
For example, my husband doesn't read the boards and he is not as "convinced" of this strategy as I am. It has been difficult to watch the balance in our position go down, down, down. God bless him, he has put up with my insistence to hang onto our shares(and buy more!), and I think even he is getting used to the volatility!lol! But just yesterday, when the past few days have been pretty exciting, he spoke about "taking some off the table". Of course, that is out of the question, but I am sure that is how many are feeling. I can't help but think that that decision could be the difference between a squeeze and a bullshake. A bullshake is good, but it sets the stage for another round like we have just endured.
Again, if I'm wrong correct me, so my "stupid light" will stop flashing. I just think it is important to prepare ourselves "before" the events so that there aren't suddenly gut wrenching decisions to make. It has been the incredible foreknowledge provided on these boards that has not only educated me since I began investing in the FLD's, but has given me the resolve to hold fast and "see" the happy ending to the story.