Yesterday, I sold 1000 shares of TSE: FVI Fortuna Silver (Silver)
In at 2.34, out at 2.24, loss = -5.12% after commissions.
Stock Trade Commentary
Yesterday, my margin account displayed -58$ as buying power. This is unacceptable especially with the current market conditions we are going through. I had to free up some money in order to be able to absorb further market losses without selling. This is the first registered loss in several weeks!
Of course I had to swallow a 120$ loss on this one. A bit disappointing, just last week I could have sold all of my FVI at no loss. On to the blame game, who is to blame for the outcome? Of course I have only myself to blame not the market. The plan was to sell FVI once the drilling results got out because after that it will be a while before any worthwhile news move this stock. The drilling results were excellent and propelled the stock into the 2.50s. I missed this news at work and only got hold of it at the end of the day. The natural reaction should have been to sell it all at market the next day according to plan. However, with the Euro worries resurfacing I got greedy thinking precious metals will be soaring and decided to keep the shares around knowing full well that my margin was maxed.
Lessons learned:
- Always stick to your trading plan
- Always prioritize keeping your margin low
- Always better to lose potential profits than to register an actual loss
I can’t complain about the money lost here, the stock market is risky and if someone can’t absorb a 5% loss he should stick to government bonds. Looks like the market weakness will be here for the summer; I have nothing but time to wait it out holding my oily stocks. In the end, there’s only so much oil to go around and the prices will have to rebound.
How is the market weakness affecting you?
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