August 26th, 2010 
Category: 
Yesterday, I sold 1000 shares of Fortuna Silver (TSE:FVI) at $2.44.
In at 2.34, out at 2.44, profit = +3.46% after commissions.
Stock Trade Commentary
Yesterday, I sold the last of my shares in FVI, deep down I feel I might have sold too fast since Silver just hit 19$ yesterday and could continue its run. On the other hand, in this uncertainty I prefer to free up some cash in my non-registered account keeping margin use to a minimum. Remember, safe guarding the fighting power of your troops is essentials if you wish to be flexible in your stock operations. Of course this does not apply to you if you are a long term buy and hold investor.
The sell does not mean it’s the end of the story, I will keep an eye on FVI with the intention of getting back in when opportunity appears. Frankly, I am surprised at the market closing slightly up instead of triple digit losses following weak reports on homes sales and durable goods orders. The numbers have spoken clearly, the economy is stumbling again. Bargain hunters might have saved the day yesterday but there will be another round of data which means there might be further opportunities to buy at cheap in the near future.
In retrospect, getting into Delphi Energy (TSE:DEE) for a quick flip proved to be a bad case of market timing (what’s new). DEE is known as a natural gas producer and right now, the natural gas price is licking the floor. However, when I make such moves I make sure the stock is fundamentally strong, so any uptick in gas prices with the oncoming cold will move DEE back up not to mention Cardium oil results getting released in the coming weeks. On the other hand, if the price bounces back above $2.53, I will free the cash because of the uncertainty out there.
There is more and more talk of September being the worst month for stocks. The fact is, no one knows what’s coming. Take every analyst’s word with a grain of salt, just be ready with your reserves to act as you see fit. Not being fully invested gives my portfolio the strength to absorb losses from any upcoming fat fingering.
What’s your take on the Stock Market?
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My DIY stock portfolio is overweight in Canadian oil producers for a reason. I believe Oil consumption is on the path of growth for the next decade and I intend to take every advantage possible of it:
My thoughts on DEE (although I haven’t studied the company but like natural gas): if you must trade do it with half a position. One day 5 years from now you’ll look up and see that it has quintupled and you didn’t get back in that last time because it hadn’t dropped 2 cents.
Been there …done that.
Still rooting for your trading though!
Thanks for dropping by DIY,
I should have went in with half a position to start with like you stated. On the other hand, now that negativity is in the air, i would like to lighten up the portfolio at no loss if possible. I have a feeling there’s a fat finger on the way
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