Trading Oil for Gold on a Freaky Friday

Here is a quick update on a brutal and freaky trading day for me on Friday.

Bought AAV @$4.59 on 29 July Sold @$4.39 on 3 August. Stock closed the day @$4.29.

I saved $100 by selling the stock when I did but I still took a bath. I also believe after the brutal earnings report that this stock will be in the penalty box for at least another quarter. 

The momentum turned negative as I knew it would before the open but I had a hard time selling as traders were rushing for the exits.

In total I lost $200 on the trade.

That was not the worst of my trading Friday. I bought 2 stocks off my watchlist as the price of gold was moving up nicely on the day.

New Buys

1800 shares of OSK @ $2.19. Closed the day down to $2.15. Down $81.00 on the trade.

1000 shares of NVO @ $4.39. Closed the day down to $4.28. Down $114.00 on that trade for the day.

I crystallized my loss on AAV and also lost on the two new buys I decided to make. 

Total loss on the day ended up being $395.00

Not very happy with my decisions on what ended up being a very freaky friday for me personally on the trades I decided to initiate.

Words of Trading Wisdom

I have learned early on to accept my losses early and move on. It was well telegraphed after earnings that AAV was going to lose money. If and it was a big if, the report was positive like it was for PONY then the stock would have popped and I would have been in the green.

It is not losing the money that is important in trading it is what you do with the money that is left over that is more important. In my case, I plowed the money into NVO and made a new purchase in OSK.

I have owned both of these stocks before and again lost money on the trades. They both look ready to break out from here but I have no idea and know nothing. My dismal record so far speaks to that.

I will probably abandon my strategy of buy on Monday and sell on Friday as it's just not working out.

Gold Watchlist Update

The watchlist is down a total of $234.00 or 1%. Friday took the whole shabang down into the red as the stocks totally decoupled from the price of gold.

I am watching AR, YRI, TGZ, GSV, MUX and PVG. GSV and YRI are the only stocks in the green since adding them to the list.

GSV is up 11% since 16 July. Should have bought that puppy. Did you?

I had a much better day in my DG portfolios as they finished in the green. Things are just not working out in my gambling portfolio and if things continue this way through the fall I may abandon ship and just stick to DG investing and not gamble anymore. 

Turning my oil stocks into gold stocks didn't work out on Friday so I may have to hold them for longer. I don't like to hold losing positions beyond 20%. I am trying to time the market too perfectly so I am going to hold them longer and see what happens.

Updates will happen less frequently if that happens. How has your trading life gone lately?

Related Posts:

Never Fall in Love With Stocks
The One Stock Gamble

Good Luck and Happy Trading!