A dedication to Ausdauer and a retrospective:
Aus's first SNDK post, I think.
www3.techstocks.com
In retrospect, the lesson to be learned is to give a NASDAQ stock room to move. Buy a position, about 1/8 of your total portfolio, and then only buy more, given that its a long term investment, on about a factor of 50% or 30% in price. (e.g. buy at $24, then again near $12 or $15, then load up for the last time at $7). This all assumes the underlying security has legs and will not file bankruptcy.
Think in terms of factors of 2 in general. I see you were thinking of buying at every point drop, $23, $22, $21. I did this in 1990 and got killed. You can see that you run out of dry power too early. Stocks hit book value. Because I lived through it in 1990, I was able to survive this downtrend and even come out smelling like a rose.
One of your best "general" posts.
www3.techstocks.com
Again, hats off to you for sticking with this thing all way the from $24ish to $5ish back to $30ish, without bailing out. You have 90% of what it takes. That took guts. But don't ever mortgage the house on something like this again unless its trading at cash or book value. If you would have bought in a sequence like $24, $15, $7, you would be up much more today, I believe. Think of buying again only after its down more than 30%.
The next party is after we break $40...
Cheers,
Rex
($29) |
