Today, I sold my 5,000 shares of Impact Silver (TSXV:IPT) at $1.50 from my TFSA account.
In at $1.083, out at $1.50, profit = +38.23% after commissions.
Stock Trade Commentary
Right at market close my sell order was executed at $1.50. As the seconds ticked by, watching my shares next in line on the ask, I thought a hundred times of cancelling that order and keeping my shares. I had become dangerously emotional about IPT. So why did I sell my only precious metals stock?
The share price surged to a yearly high of $1.60 yesterday to see it drop back to a low of $1.30 today before recovering in the afternoon. This volatility was caused mainly by Irish debt woes and partially by the CME increasing the margin required for holding silver futures contracts. This volatility where the greater part of my paper profits disappeared in a heartbeat pushed me to sell and lock in a decent amount of profit at the first opportunity. There is always a chance Irish trouble pushes investors into the safety of the USD with the well known consequences on commodity prices. On the other hand QE2 is just in its infancy and as such commodities might well be in the beginning of a run.
I am usually a ruthless seller but in the case of IPT I do not know if I broke my plan since I totally believed in the fundamentals of the company or if I did the right thing in booking profits, maybe time will tell. It seems that this volatility pierced my defenses and liberated my emotions. This explains why I am not sure anymore if I did the right thing by selling, am I regretting the sale right now because I was expecting a higher profit margin? Is it greed eating me from the inside? Did I get too attached to the company? I don’t know anymore!
Have you ever been through similar emotions? What do you think of this case?
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