I have previously bought Cisco on Nov, 2011 and lost $3,300 on this trade. I have forgotten to record it under my Chronicle of Investment, and therefore, I am going to blog about it and to post the losses back in my Chronicle of Investment section.
The reason is maintain the honesty to my all my readers and also to keep a detail track record of my investment regardless whether it is a small lost or a big lost.
Date Bought: Nov 15, 2010
Price: $ 20.12
Reason Bought: I thought this stock is oversold and the downside to this stock is minimum at this level.
Mistake: I should have waited a bit longer for the selling to subside before jumping into it. It is very obvious that the selling is still ongoing as the volume is still very high. Moreover, both the MACD and Stochastic do not show a buy signal yet. It is a very careless mistake that I have made.
Date Sold: Nov 17, 2010
Reason Sold: The reason I sold is because my head is not thinking right. I am afraid that it will go down further. Although it does go down further to around $19, it eventually rebound to the current level of $21.50 and above.
Lesson to be learned: I should have more confidence on myself and the decision that I have made. If I think that Cisco is a good stock and it is good for the long term, I should have hold on to it until I start to make good money.
Profit Lost: -$ 3,300