BGMD Trade Recap
Here is a lesson learned and why it’s extremely important
to follow your rules. Pre-market 3/20/14 news hit my equityfeed news stream
that BGMD released their 2013 Fourth Quarter and Year End Financial Results. I
read through the report, earnings were good for both the Fourth Quarter and
Year End. Ten minutes later BGMD announced issuance of a patent covering Galectin-3
testing. By market open, BGMD was already up 25% pre-market. I placed my limit
order at $2.28 for 429 shares. The price was currently $2.30. About 5 minutes
later I got 429 shares filled at $2.28. I had already set a mental stop for
$2.21 per share (approx. 3% loss). The price hit $2.22; I already had my sell
order set up for $2.21 with my hand on the trigger (as Tim Sykes teaches). The
price hit $2.21 per share; I sent the sell order in. I got all 429 shares
filled at $2.20 immediately. The price per share would not trend back above
$2.20 for the rest of the trading day. BGMD closed the day at $1.92.
At the end of the day the trade was closed out at a $34
loss. If I would not have followed my rules, the losses would have been much
worse.
I can’t express enough the importance to cut your losses
quickly. This is my #1 rule.
Disclaimer: At the time of this post, I no longer hold a long or short position in the above mentioned securities. I may or may not re-enter a long or short position in the above mentioned securities without notice after the publishing of this blog post. I have never been compensated in any way for my mention of the above securities.
Disclaimer: At the time of this post, I no longer hold a long or short position in the above mentioned securities. I may or may not re-enter a long or short position in the above mentioned securities without notice after the publishing of this blog post. I have never been compensated in any way for my mention of the above securities.
