GEO Energy - A Memorable Loss

From Jan 24th this year I longed 500 lots on Geo Energy. At that time, I thought Geo was about to move and confidently whack in big lots so as not to miss the opportunity. At 27th Jan, 3 days later, I took a 3 pip lost. I went in at 0.325 and 0.33 and cut loss at 0.315. The cut loss was tight but due to the difficulty level of this counter.

After I cut loss, I thought I made a mistake as the stock showed some kind of renewed strength. Once again, my confidence revived and this time round, on Jan 29th, Feb 07th and Feb 24th, I traded 1000 lots of GEO Energy just so to prove my conviction was correct. Indeed, on March 4th, the stock was heavily traded with huge lots of buying at 0.34. At that time, I went and turned greedy and wanted more $$. So I decided to hold on and wait. Some of my students already exited during that period of time while I was patiently and greedily waiting for the price to rise further.

Finally, on Monday April 7th, I decided to cut loss on this counter as it was too slow and wasn't moving that much while the broad overall market was moving. It was a painful loss but a good deserved lesson. It was a right call turned wrong. Greed got the best of me and blurred my vision. Morale of story! Enough is enough, expect less and gain more!

Ronald K - Market Psychologist - The Big Speculator