Minutes on of Learning From the Past Stock Tradings

I listed some of the mistakes I made more than one times here and hope to avoid them in the future. Of course history not always repeat itself and making the same move when the same situation appears in the future may turn out to be correct. Nevertheless these minutes can remind me what major mistakes I have made in the past.

1) Mistakes of trades on WFC and BAC when they did secondary offering.
Don’t Short a stock when it is trading higher then the offering price in after market on the day when the secondary offering price is announced especially when Goldman Sachs is the underwriter. I did this kind of shorting on WFC and BAC and both lost money. In fact I should long in after market and sell next day in pre-market.

2) Mistake of rushing to take a short position at market opening.
Don’t rush to take a short position at market opening even when the price of a stock runs up an unbelievable percentage. I made the mistake more than one times on LINTA, WFC, and BIDU. Seems to me the best time to take a short position is at market close given that you still believe the price up run is too much.

3) Mistake of miss judging the market trend.
If the US market opens higher after the world markets it tends to trend higher during the day given no major bad news.

4) Mistake of rushing to sell and not waiting still earning release day comes close.
Don’t rush to sell depressed issue even you believe earning is not going to be good. At least wait till the day before earning release. I ever held VISN but didn’t wait till release day come close when the price run up began. When earning release day comes close many depressed stock will become the target of price manipulators. Manipulators may identify depressed issues and push up the stock price in hope to mislead the market that good earning has been leak. There may be a good selling point when we hold the depressed stock long enough before earning release even we believe earning is not going to be good

I originally wanted to keep this minutes in a private post because obviously these are specific to my trading experience. You might experience the exact opposite and it could appear totally nonsense to you. But this is a blog and this is what blogging is about. I should still feel good if you have a good laugh reading it. Comments of all kinds are welcome!

I want to add a few lines after I post this yesterday. I found for all the mistake I made if I had hold the issues I lost long enough say two trading days. I could have realize profit on them.