Today the market showed a lot of people what it looked like to experience drawdown on the portfolio.
I was heavily invested coming into the morning but was forced to liquidate high-beta stocks such as $APRI, $PACB, $DNN, $LYV, $FNMA to raise cash. I also reduced position size on my long-term position $CERS to reduce risk.
Since I’ve strong conviction on $AMRN, LRAD, $TINY, and $CUR, I’m holding these position pretty much untouched. I did trade out and in on $AMRN. I sold my swing trade position to avoid an avalanche falling price; and when the waterfall did not happen after I sold, I bought back most of it by end of day to see if there is a bounce tomorrow. If not, I will dump my swing trade position pronto.
I bought $KOOL today because it is related to the stem cell business. $CUR is a stem cell biotech and I’m feeling good about stem cell being the next big thing in our biotech world. But then, in the world of trading and investing, how you feel do not always win you money… I’ll cut my losses accordingly if what I feel is not happening.
Today losses are part of the business in trading and I know that, in time, my long-term position in my portfolio will bounce back; so I’m not worry.
AMRN, LRAD, BIOD, TINY, CUR, CLIR, KOOL, CERS and 23% cash.
Categories: Daily trading Journal