My Third Donut!!!
Welp, it happened again.
I mentioned in a previous post that I have had two stock trades that resulted in a total and complete loss. Well, I now have my third.
Of course, I’m not considering the multitude of trades in options contracts that became worthless upon expiration. I consider that a separate issue with different dynamics that play into it… namely, that an equity position doesn’t “expire”.
But I want to highlight a couple of things about this trade that bear mentioning.
Firstly, it was not a ruinous trade. I had only allocated about 1.5% of my total portfolio value to this trade. Worst case senario? Not palatable, but easily digestible.
Secondly, I had a chance to exit. Not just exit, but exit with a profit. Not just a profit, but a nice +60% profit… and I elected to hold on instead. And now all I’m holding is a bag of inedible donuts.
(Shrug)
It happens, folks. Fortunately it’s not a regular occurrence, but it’s still someting to factor into your money management/allocation strategy!!!
Caveat Emptor.