Goldpusher there are some good lessons to be learnt in there but at the same time you may get stung by using the lessons. Stop loss can be good but if have them too tight can loose lots of dough as well.
The psychology is sure a baffler eg your reasoning behind the holding. The good thing is you had a plan in place and stuck to it, just that the plan did not play out in your favour at this point. Your 2yr goal could still play out who knows in this finicky market. POG is still very bullish, you just need AAM management to get a grip on things. I have no idea if they will or wont, it seems that BWJ does not think they will. I cannot work out if that is through being stung and not speaking from an objectional mind set or just fact, seems to know a fair bit about the company though.
I did well with AAM bought low and sold at .28 from memory and was kicking myself when it went in the .30s. I have lost dough else where though, AAM was just a lucky call for me.
Setting a limit is the best point you have come up with, my main problem with trading has always been too greedy and too large a position. Unfortunately sometimes it pays off and then encourages further gambling.
Do not be surprised if you get stung with blue chips though as they can become unstuck too. Take AMP when it was $10.50 now $5.50, Telstra is a classic now worth 25% of its former value. NCM newcrest considered a blue chip gold imagine if you brought in March 08 and was holding in Oct 08 you would have been just as hurt but obviously now has recovered. Santos STO your friend one minute then enemy the next.
AAM Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
