I am looking at the screen which is paying me back for being such a prat as to break my own rules—Yesterday I invested in a stock that only three months earlier, after getting to the final research stage of clicking the discussion tab, and writing the following in the “notes” “Paul Scott says no because of a dubious accounting policy and that is good enough for me even though it scores 23/24 on my Check Sheet -but it would if the accounts are fixed! -SP 202”.
So why did I buy yesterday at SP 161? Well my Check Sheet was now showing 100%, all bases agreed and the company were talking up the stock suggesting a fourfold increase in business by 2021 and a great dividend. I knew that a six month update was being made today Tuesday- so come on how many opportunities do you get to prove the world wrong? I would have to break just two rules, the trend reversal was in place as was the 20% unrestricted headroom, okay it hadn’t completely cleared the 50/200 moving average but it was close enough and oh yes, I didn’t have one week of positive volume , but hey it isn’t possible to buy at the bottom and have positive volume. Yesterday the stock opened up and slipped back to Fridays price—the gods were with me, so in I go with my usually early start money. No sooner was I invested than it slipped back into negative territory and by the close I was 5% down. Not to worry the stop loss will save me, but I hadn’t bothered with the stop loss after all it was going up on the announcement 07:00 Tuesday.
Well it didn’t, it fell another 10% because the accounts had to be restated and I am not clever enough to determine just how detrimental that will be to my future wealth—I ask Paul to help me out. Not such a hero after all – moral of the story if you make the rules don’t break the rules—I could have bought 15% cheaper today—stop me someone.
Not the end of the world just another lesson on how not to do it. Now I wonder what Paul is going to say about Utilitywise?
Sorry everyone I didn't know you could post twice, if anyone can tell me how to get rid of this copy I will do it. Don't need stereo embarrassment!!
