I wanted to provide a quick update to my 10th trade now that I have officially exited. For those who read my last post, you saw that I was 'stuck' for about two weeks due to a bad move on my part. Here are the details and outcome of that particular trade:
The stock I chose was JetBlue (JBLU). JetBlue is a great company, but I have quickly learned that airline stocks are risky, to say the least. I'll just leave it at that for now.
Anyway, here are the details of the trade - I had been watching JBLU fall for several days in a row and I was hoping the following would occur: the stock would level out, the price would slightly rise as buyers took over, and I could scalp about $100 gain, and then get out. Unfortunately this trade was somewhat undisciplined and I entered too high. In fact, I should have never entered period. As my skills in technical analysis improve, it is clear that I was entering at too high of a price.
Nonetheless, I was stuck holding JetBlue since the middle of January (at a relatively high purchase price) unable to exit due to its ~4% drop or so in price. Unwilling to take a loss, I had to wait it out and hope for a rebound. To complicate things further, I was extremely nervous to hold over its upcoming earnings. The stock had recently been downgraded, and as earnings approached the price continued a slow decline. In fact there was one point where I was down around $4000. Fortunately, I kept my emotions in check, the stock rebounded, and I was able to exit prior to JetBlue's earnings call. (Now, for those who follow JetBlue, or read stock headlines in general, you'll notice that JetBlue actually beat earnings and the stock rose another 2% or so).
That's ok by me. For my particular situation, I was happy to exit prior to earnings, and I even made $99.21 on the trade. Hallelujah.
Now, my profits for January total at $1,297.93. Think how large of a portfolio I would need to earn that amount in dividends.
In other news/analysis, I am expecting a large market pullback in the near future. With my limited technical analysis abilities, it appears that almost every major company is over-bought and volume is low. We'll see what happens.