Today was a really nasty day because of all the rain and cold weather. I decided to hang out today and just watch the market to see if something might come my way.
A few weeks back, I initiated a new position in T in my IRA that I trade in. In that time, the stock has stumbled a bit, but I collected the dividend and reinvested in more shares. Well, today, the stock had an early rally and shot up about 40 cents from the day before. However, the price was over 50 cents higher than I paid for the stock ($34.23). I had the limit order in for $34.80, and went about my business. I should have been a little more vigilant and just made the trade because, by the end of the day, all of the gains evaporated. I have always been of the mindset that a gain is a gain and I have always taken the money— not today.
I guess I was greedy today, and I got spanked! That is not going to happen again. If I make my %age gain, I am taking the money and buying something else— end of story.
It seems that, every once in a while, we need to come back to reality and realize that things do not just go one way. They fluctuate up and down. I decided a few months back to stick to my strategy, so I need to do what I set out to do.
I am reinvesting my dividends, selling calls and trading to generate income. I must be able to see the trees as well as the forest and stick to my plans in order to see the results. Time will tell, but I am taking the money if I get another chance. Maybe tomorrow.
Robert the DividendDreamer