Will history repeat itself?
moneyrelations :: Jul.30.2007
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Well, I’m okay. Last week’s selloff didn’t send me quivering in a corner. I’m still in it for the long haul so I’m not going to sweat it. What does have me a little peeved off is the fact I missed this correction after I had put some money into my “mad money” account 3 weeks ago– I picked up Enbridge, Claymore BRIC ETF, Wi-Lan and Timminco.
I wouldn’t call Enbridge “mad” at all as I wanted a good solid company that I can hold long-term. Even though the BRIC ETF is thinly traded, I bought it because it was Canadian denominated and I don’t have access to US ETFs yet. I bought Wi-Lan and Timminco based on revenge. I’m not proud of succumbing to emotions while investing, but yes, it was based on revenge.
When I first had my misadventure in investing speculating, Peter Hodson (regular guest, Sprott portfolio manager) had come on Business News Network (then RoBTV) to choose Hudbay Minerals (HBM) as his top pick. This was back when it was trading at $4. At the same time, I was deliberating on Tahera (TAH). HBM or TAH… HBM or TAH. We know how that story panned out. Even with the selloff, HBM closed at $26 on Friday, while TAH was at 56c AFTER a reverse split (in essence, 11.2c/sh). So, Peter comes on again and chooses Wi-Lan and Timminco as his top picks. Revenge. Like a good little sheep, I bought it. BAAaaaaaa. In self defense, I bought the stocks before I started my blog.
…
Nah, I’ll be honest, 3 weeks is not enough for a personality makeover. I probably would still have bought it. At the very least, I did follow some of my own advice and did not initiate a large position. I did stick to my bid price but little did I know that it would go even lower. Based on those 4 purchases, I’m down $276.97 so far. I’m only up on Enbridge, my defensive play.
Will history repeat itself? Will I flame out spectacularly as I did before? Will I eventually have to file this under Stupid? I sure hope not. I decided to blog about this to show how hard it is not to be human, and how hard it is not to give into our emotions. I am the every (wo)man that hangs onto the media’s word for the next hot pick. I know this gambling but I’m taking a flyer on it. I’d also like to say this is money I can afford to lose and not lose sleep over.
In the future, I promise myself that I will come up with a definitive investment strategy and individual securities must meet certain criteria prior to consideration.
Before I sign off, I see Shore Gold is at a 52-week low and I’m tempted. Maybe it’s redemption for my diamond plays. I still don’t know anything about the industry but I just can’t stop looking. Must resist.
Investing ::
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I am sure I am going to be very much like you when I start managing my own investments. I troll the media for ideas too, and think about what I would invest if I could. Now I can learn from you too
:)
Sigh, this is another one I didn’t want to admit to. I’d like to come off as half-way intelligent like other PF bloggers and not make decisions based on what someone says on TV. It’s embarrassing even when it is anonymous. Wi-Lan and Timminco might be good buys but I just heard a story and I went with it – that’s not investing. I had to own up to this one too as I know the majority of new investors do this. I’m sure I’ll have more boneheaded moves coming.