An Expensive Lesson

Back in the early 2000’s I purchased shares of ITWO Technologies for about $4/share.  (If you’ve never heard of the company, there is a reason).   I purchased a few hundred shares, and then watched as the company climbed steadily over then next several months, eventually topping $20/share. 

Sitting in the airport one day, I was reading the annual report.  I came to the realization that the company actually produced nothing – the entire company was based on fluff and hype.  I phoned my broker and put in a limit order, GTC.  The stock sold off a bit that day, missing my limit.  I sat firm on my limit, expecting the stock to rebound and hit it later.  The stock never did, falling steadily.  I can’t remember if I ended up making a profit on the stock or not, but I’m sure I sold it for $8 or less.

The lesson here is, if you have a reason to sell a stock, don’t play games.  Just put in a market order and sell it.  Likewise, if you have a phenomenal stock, just buy it.  Trying to get fractions of a point may end up costing far more.

Refer a friend – link to this page:

Disclaimer: This blog is not meant to give financial planning advice, it gives information on a specific investment strategy and picking stocks. It is not a solicitation to buy or sell stocks or any security.  Financial planning advice should be sought from a certified financial planner, which the author is not. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.

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