Dryships - A Ship that Almost Drown Me!

 George Economou - Chairman, President and Chief Executive Officer of Dryships

Some have labeled him as a crook, a mastermind that manage to convince the American Fund Management Company to part with their money. Many people hate him as they have lost their life saving investing in his company - Dryships.

Despite losing big money investing in his company, I did not blame him as it is all my decision and my instinct to invest in Dryships. The reason I am including this post in my blog is because I hope to remember my mistake and to remind me not to commit this silly mistake again in the coming future.

I have speculated Dryship at an entry price of $3.85. This is a very big mistake that I have made, as my instinct at that time is based purely on speculation coupled with some careless analysis of the chart. I made another mistake by following the herd during the capitulation process and sold at the rock bottom price of $2.40 instead of waiting for it to bounce back to the $2.40 level.

The mistake that I have made is thinking that $3.90 is a strong support and will never be broken. Even though, it was broken later, I did not let go my position instead holding on to it thinking that it will bounce back to the support level. However, it did not, it kept dropping furiously to the rock bottom price at $2.40.

Second mistake is I shall have wait for Dryship to convincingly break the downward trend line before I jump into this horrible ship.

This is a very big mistake that I have made for 2011 and I have to bear with it for a long time before it starts to fade off in my memory.

I hope that I won't repeat this silly and careless mistake again in 2012.