Today was one of those learning days for me. Right now I feel a profound sense of frustration at myself and only myself. Since the start of the year, I’ve begun doing many new things including investing in stocks, investing in lending to others through Prosper.com and LendingClub.com, working on my own computer game, and in general, trying to be a good father and husband for my family. Today, however, I made a mistake.
I’ve made many mistakes investing in stocks – all of which are emotionally based. I actually do pretty good coming up with decent value propositions and what I think are good buying points on stocks. Most of my money lost investing in stocks was a penny stock whim a few years ago where I lost a couple thousand dollars – a completely emotional and irrational decision.
I started this year with some good stocks picks in Canadian Energy (PWE, PGH), Oil (MVO), Food (MCD – McDonalds), and the mREIT (AGNC). After researching and talking with others, I sold all my positions a month ago as the market appeared to be headed downard. I bought back into more stocks, including a hefty position into AGNC a couple weeks ago.
However, I sold my position in AGNC at open of market today after seeing the international markets take an extreme beating last night. I felt like my investment was truly at risk due to rising interest rates and reading others saying the mREIT and REIT sector AGNC is involved in could be in big trouble. I sold at a loss to the tune of 8%, wiping out my 6% gain from earlier in the year and then some.
Today, AGNC (and many other stocks) are up high. I feel a case of, “Why did I do that?” in hind sight now. My strategy for buying AGNC was that I felt it was at a discount and the dividend was going to be kept up. The market certainly agrees with my value proposition and disagrees with my early sell of the stock.
Don’t I wish there was a “Load Saved Game” button like computer games have? I could go back and not sell this morning! But life is like that – you get one shot at any given moment and sometimes it works out and sometimes id does not.
I think moving forward, I just have to lick my wounds and keep swinging the bat with what I think are good stock picks and make what I think are appropriate decisions based on how I feel the market and world economy is going. I can only fault myself for making a rash decision instead of waiting to see how things played out today before doing such a quick sell. In the future, I will look to be more calculated and slow to react. Thanks for letting me share a few thoughts about my mistake investing today.
- A Case Study Of Financial Opportunity: AGNC and NLY
- May 6, 2010 – The Strange Stock Market Day
- Holding Stocks When Fear and Panic Set In
- Year in Review, 2013
- What Being Rich Might Look Like