I figured you might want to know the outcome of the stock story in Roll the Dice. Well here it is. I sold the stock last Friday for $1.84/share. The stock gods were smiling on me. Here it is Thursday morning and the stock is opening at $0.0685. That is less than 10 cents. I guess I made the right decision. My broker buddy did try and call me on Tuesday, but I was teaching so couldn’t take the call. When I tried to reach him on Wednesday morning, his extension had been disconnected.
One of the keys to success is to review your successes as closely as you review your mistakes. We often look at mistakes and ask what went wrong. (if you don’t, you should). You need to do the same for your successes. What went right? Can I do this again? What did I learn? From this experience, here are the answers to those questions. What went right? I actually made money on this deal. I got out at the right time. It reinforced the rule that you have to set exit targets, both for profit and loss, and stick to them. I almost didn’t.
Can/Would I do this again? The answer is a cautious Yes. I would still do the research, and if it was the same guy that called, I would go with him again. I would stick to my exit points with less greed than this time. What did I learn? As I said, it reinforces the stick to the rules aspect of investing. Still my greatest weakness. It also reinforced that you need to be not only interested in your money, but also ACTIVELY INVOLVED with your money. If I had of bought the stock, and waited till I got a call that it was time to sell, this story would have had a very different ending.
What this company, and others like it does, may seem a little off track, and unfair. To an investor with little knowledge, this is a VERY dangerous situation. I get tons of emails, and every website I visit has adds from companies that are just dying to tell you about the next big stock. Just sign up for $XX.00 a month and we will tell you. What I have found is that many of these companies will tell you about the stock after it has gone up 100% or more. I always ask 2 questions, 1) If it has already gone up 100%, what makes you think it will keep going up? 2) Why didn’t you pick/push this stock BEFORE it went up 100%.
The stories don’t always turn out well. I will write about one that went wrong next.