Take care.
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Thursday, November 13, 2008
Averaging Down
Averaging down is not always a good idea, but I hope it plays out well in this instance. SOL is up in the premarket. My average is down to 5.49. Looks like futures are slightly positive (not sure if that means anything anymore), but there are many other troubles looming in the business world. Intel's reported significant trouble, profits are down across the board, and the auto industry is receiving its last rights before being put on life support. So we will start the day in a precarious position.
Take care.
Take care.
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5 comments:
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CP,
Good luck! I didn't average down but I wish I could when SOL was trading at 3.5. Anyhow, I had got myself screwed up big time in averaging down but SOL is really chip and downside isn't huge. Lately if I had to average down, I am doing so in smaller and smaller positions(number of shares), so I dont get myself screwed. If SOL, even meets their estimate, see this stock flying. I just had terrible experience with FEED - they promised totally different eps even just days before earnings and when earnings came out, they had slashed that estimate by 50%. I hope SOL doesn't do that.
Note - I didn't average down by buying stocks but I did buy a couple of SOL calls yesterday.
I got screwed by a margin call. I got an email saying my account could no longer make purchases. I replied asking if I would be forced to liquidate, and if so, if I could add more money to the account to cover my margin. I then checked into my account and everything had already been sold. I was extremely bummed. I received another email in reply to mine. I wrote a longer letter asking why the entire position was liquidated, rather than just that which was held with margin, or something along those lines, especially since they said it was because I couldn't margin a stock under $5 (which the system allowed me to do anyway. I don't quite understand that.).
I think it was for the best (it taught me a lesson in patience, and margin responsibilities), even though I would have liked to have held on. I'm transfering the money out of my sogo account as soon as I can. I'll put what I can in my zecco account and do a little straddle/strangle option purchasing. I'm probably going to be out of the pure stock trading game for a while. I'll get back in when I have a little more capital.
I'm fairly happy that I have an account with the ability to trade options.
I wish you luck with SOL. The call idea is probably a much safer investment.
Thank you, kristel.
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