LESSONS LEARNT
CNQ/TLM
I opened large positions in two large cap energy stocks (CNQ/TLM), unfortunately, both went down after opening. I am very upset with myself and I have to come here to try to calm myself down. Let's see how many mistakes made here. First of all, I am too anxious to make some quick money and it is never a good thing. It is emotional and it really affects (negatively I may add) my judgment. Secondly, never buy from opening. In fact, never buy in the first half hour. Wait to see where the market going before committing. Third, I should have opened a small position and add on when it weakens. Fourth, always ask youself, are you "buying low, or sell high". I do not believe I was this morning.
Having said that, the worse mistake I could do is to panic and dump them here. Both are quality names, and oil appears reversing itself and moving upward. The volume is small and moderate, indicating some profit taking. I believe the crude will continue to move up from here to mid-60s and energy stocks should perform well. DO NOT PANIC.
AST
Adding some AST here (16.50). This is a simple trade. The spin-off will be the near term catalyst to boost this one to lower 20s.
CNTF
Adding some CNTF (13.25) here. It was down by 16% today without any news. There will not be an earning miss as the company has reiterated its earnings for Q4/05 and 2005. At this level, the valuation is becoming compelling again (about 13X of EPS06). It appears that the selling was a bit of over-done, and there's some panic in the air. I expect it to bounce back to 14-15 level in the next few days.
I opened large positions in two large cap energy stocks (CNQ/TLM), unfortunately, both went down after opening. I am very upset with myself and I have to come here to try to calm myself down. Let's see how many mistakes made here. First of all, I am too anxious to make some quick money and it is never a good thing. It is emotional and it really affects (negatively I may add) my judgment. Secondly, never buy from opening. In fact, never buy in the first half hour. Wait to see where the market going before committing. Third, I should have opened a small position and add on when it weakens. Fourth, always ask youself, are you "buying low, or sell high". I do not believe I was this morning.
Having said that, the worse mistake I could do is to panic and dump them here. Both are quality names, and oil appears reversing itself and moving upward. The volume is small and moderate, indicating some profit taking. I believe the crude will continue to move up from here to mid-60s and energy stocks should perform well. DO NOT PANIC.
AST
Adding some AST here (16.50). This is a simple trade. The spin-off will be the near term catalyst to boost this one to lower 20s.
CNTF
Adding some CNTF (13.25) here. It was down by 16% today without any news. There will not be an earning miss as the company has reiterated its earnings for Q4/05 and 2005. At this level, the valuation is becoming compelling again (about 13X of EPS06). It appears that the selling was a bit of over-done, and there's some panic in the air. I expect it to bounce back to 14-15 level in the next few days.
posted by ZIGZAG at 2/21/2006 10:24:00 AM
0 Comments:
Post a Comment
<< Home