Not Happy About A Missed Trade… Welcome To The Stock Market
Yesterday, before the market rallied, I logged into my brokerage account and prepared to sell my entire position in the Financials Ultra Short ETF (SKF). The stock was up to about $140 after the string of ugly events in the financial sector. I was about to unload the entire position and roll the money into Apple (AAPL) stock as Apple had hit a low of around $125 a share.
Unfortunately, I didn’t pull the trigger. I thought, this thing has some legs so I’m going to let it run it’s course a little longer.
Today, SKF is at about $93 and Apple is back up towards $140. Missing this trade cost me about $700 over the last day or two. I’m a little mad at myself for not pulling the trigger, but I am being forced to recognize how fast things can change in the stock market especially in these extremely volatile days where the Dow swings up and down 400 points in a single day.
The bottom line is you have to be willing to take profits when a volatile position you hold is up. SKF is not one of my long term positions that I am planning to hold for years, I was trying to capitalize on a short term movement against financials. I played it right, I just didn’t take profits.
Learn from my example… It’s never a bad thing to take profits.