Gambling on Garmin’s earnings – An eye opener
Today before the market opened Garmin Co. (GRMN) released its earnings. As I woke up, went to work, got dressed, and dashed to a computer to check GRMN stock quote my face turned pale. My heart literally stopped and I sat dead stairing at the computer screen. GRMN @ $45 down -7pts. Talk about a great way to start off your day at work. Looked at my portfolio down -$10,000. All I could think was “fuck shit fuck shit” repeatedly in my head over and over. There wasn’t anything I could do about it now so I went to get some milk since I knew I couldn’t hold down a full breakfast.
Previously on Thursday Oct 26 I had the option to get out in GRMN up +$6000 profitably and I didn’t because I really believed earnings were going to pop up positively like all the other tech companies. Everybody has been putting out better than expected earnings why wouldn’t GRMN? My mother even told me to sell. Up 300% and I think anyone else would too. I didn’t consider myself being greedy. I wanted to follow the profit trail because my trend line wasn’t broken and there was no negative news in its sector. Even on Tuesday Oct 31 I had the options to get up 100% with +$2500, still I didn’t. I feel now if anyone is actually reading this real live stock options trading journal that the writer and traders of this journal must be totally psycho not to sell. I think I am. What is wrong with me? I broke two major rules I learned. 1. If you are up 100% get out and 2. Never go through earnings unless you are only using a small portion of your profits. I really broke both big time. I feel I received my punishment 10 fold. My account is now low again. I built it really fast and I also lose just as much really fast the way I trade. I really need to learn how to change my habits.
I just recently attended a Stephen Covey workshop on “The Seven Habits of Highly Successful People”. Although I do not consider myself a highly successful person I really do need to change my bad habits or should I say gambling habits when trading stocks. I only gamble stocks when I trade with 100% of my money. I do not feel buying and selling options is gambling most people think it is, it only is when you make it a gamble.
When you follow the rules you aren’t gambling quoted by my mother. She is right. Very right. If I had followed two simple rules my account would of been doubled right now and I could sit back and not feel horrible about myself loosing all that hard earning money it took me to do in 2 months. So from $700 to around $17,000 down to $13,000 now at $3,000. Shit. I really don’t have much emotional ties to it. Yes I had to work and put my money into the account, but its just money to me. I don’t spend it all I want to do is multiply it. Shit happens, expecially when you break big rules being a gun slinger dieing young.
Don’t give up on me. I’m coming back. I plan to not go through earnings a second time with any of my options unless its with a very small portion of the profits I received.