I had bought 250 shares of ABK @ 3.68$ on the day bailout passed. Since then, stock has done nothing but move down. Monday, I had booked major losses but I was holding on to ABK because I thought that ABK will recover and I should be able to get my money back if not make profit. Finally, today my patience paid up. ABK was moving up swiftly and it finally crossed my entry point. It reached HOD of 3.88.
Once it reached 3.88 and was pulling back, I was wondering whether I did mistake by not getting out while it was moving up. What if it again starts falling and goes back to less than 2$? On one hand, there was a possibility that ABK could keep running and hit 4$ (which could help me offset my SFI losses) and on the other hand, it could go back to 3$ or less and I would have to take more losses. I wasn’t sure what to do. I wasn’t sure why ABK was in the move today. There were news about ABK presenting plan to Treasury for buying troubled assets] but that can not move stock so much. Also, some folks at Google Finance were suggesting that this is result of a short squeeze. Somehow, I felt that this pull back is temporary and ABK will move.
Because I wasn’t proud of the original trade in the first place, I decided to at least cut my position in this trade. I sold 150 shares at 3.70 for a tiny 3$ profit. [A loss of 7$ after commission is factored in.] I decided to take chance with other 100 shares thinking that stock will move up during last half an hour of trading. Well, it did not. The stock didn’t move in aftermarket as well. Currently, I am holding 100 shares of ABK. I think I will watch ABK on Monday morning and will get out if I find that it’s tanking. Overall, I am satisfied that I didn’t get hurt too bad with ABK.
ABK - October 17th - Aftermath
It is interesting to note that just 2 days after I sold SFI at 1.10 (loss of 80 cents per share), it went to 2.10, 11 cents above my entry price of 1.99$. Anyway, I am not going to think too much about it as I wasn’t sure if SFI will move above 2$. I booked 368$ loss on SFI. As Laura says, tuition is high in this field!
Overall, I am happy with the outcome today. Let’s see how ABK moves on Monday. Till then, prepare your watch list and enjoy your weekend.
RJ.
3 responses so far ↓
1 Ashvin Savani // Oct 18, 2008 at 1:46 pm
hey man,
Good luck
2 johnnyvento // Oct 18, 2008 at 4:03 pm
hey Ramta
I think I need one more iteration of the co-relation calculator. Also I’m confused about how the numbers are being calculated. Can you make it so that it reads:
Ticker1 green/Ticker2 green A%
Ticker1 green/Ticker2 red B%
Ticker1 red/Ticker2 red C%
Ticker1 red/TIcker2 green D%
This way it is easier to see how the red/green splits are happening. Also A+B should add up to 100% as should C+D. As it stands the numbers add up to more than 100% so it is difficult for me know interpret what I’m reading.
I hope this isn’t too much trouble. I still think this is the most useful tool that a person could use to evaluate potential plays.
3 RJ // Oct 19, 2008 at 2:58 am
Thank you Savani!
And JV, I have finished working on the next release, an update is coming soon.
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