Thursday, April 16, 2009

Sell that stock!

As the market wavered, then dropped, then climbed, then held steady, then fell down, then popped up....I decided to sell that little stock referred to in my previous posting. Made a nice profit, not a huge profit, but a nice profit. Of course, as soon as I sold it, it went up another 30%. Emotions of lost opportunity wash over me like a sickness. But I hold to the old maxim that you'll never go broke taking a profit. This has been a good exercise and has reinforced these two beliefs:

1. Fear and greed are overwhelming strong emotions and nearly impossible to control once you let them out of the box

2. Active market trading takes a lot of time and energy, and is generally a losers game.

The market has been climbing steadily as I watch. Job losses mount and the news is mostly bad, except for real estate whose descent has somehow slowed. I still fully expect the market to tumble again and present new buying opportunities. I'm thinking by June there will be carnage once again.

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