Thursday, 4 September 2014

Took an exit on two of my positions

I took my exit in FOLD (Amicus Therapeutics, Inc.) and GTAT (GT Advanced Technologies, Inc.). For both, I followed the rules I set before. With FOLD, I took the exit position a bit too early. But wasn't really certain of its direction at the time and took the exit. I don't really see it going up much higher either. Might get back into it after a bit more due diligence. I'm hoping IBD will have some info on it that I don't have access to. Because after a little bit of DD, I've come to realize that it might have been a mistake to exit on it. I should probably have added more to my position if I can.

As for GTAT, it went below the exit point. So I followed my rule and took the loss. I could've took the exit earlier when it was still closer to my exit point but I waited thinking it might go back up due to AAPL going back up. Learned and reinforced a couple of valuable lessons from this. Even if two companies have some kind of relation, their share prices might not necessarily go up together or even at the same rate. Because they're essentially two different companies. The other lesson is that if I set an exit point, follow it and get out of the position as soon as the SP goes below/above that exit point. Because I hesitated and let my hope get in the way, I lost a bit more than I should have. At least I didn't lose all of it so now I can recoup my losses by putting this money elsewhere.

And that brings up the next question...where to put the cash I have after exiting the positions. I can get back into FOLD for a short-term position again. Or I can put it into BBRY and double up my position in it. Or even take another sort position by shorting AAPL and see where that goes. That's a bit of a gamble though as it might be better to take another short-term long position in AAPL instead. Not sure if I can afford too many contracts for it though. We shall see~

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