Sometimes trading your plan prevents you from realizing some big gains. Today, ROYL and GNOM saw a huge pop for 18+% and 47%, respectively. It just so happens that I got stopped out of both stocks by one or two pennies each on Friday. Its very frustrating because I could have had some huge gains.
Likewise, I got into MAS on the breakout of $13.15. The stock closed higher at around $13.25 and is looking good. I failed to realize that earnings were released after the market closed. Based on the selling after hours, it doesn't look too good. We'll have to see what the damage is like tomorrow morning. I'll take my chances to try to get out when the market opens.
Even though I missed out on some big gains, I traded my plan and respected my stop points. Sometimes this scenario happens. If it happens a lot, I might need to adjust my strategy. Since it doesn't, I'll chalk it up to bad luck. Who knows, if I would have held, the stocks could have been down 10+%.
Not understanding when earnings are released is something I need to be more diligent with. I do not want to be holding stocks through earnings. There is just too much risk.
Trade your plan. Stay in the game. Learn to survive, then learn to profit.
~JP
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