ForexDiva-isms...

Today is a new day. Tomorrow's a new day... we're all going to make it some day... ode to gold & oil...

Just when it appeared I'd become senile, a new idea hit me. Maybe it's not new for you, but it was new for me.

Anyway, I've been staring at the Frog Formerly Known As Prince ABK the whole summer. Why didn't I just take a loss and actually put that capital to better use?

But I think it's now ruined. I've turned a four figure sum into three figures. I wouldn't be able to do much trading with it.

My idea was to cash out on all my ABK-related holdings - both in bonds and shares - and then use that capital to invest in my top secret company of choice. If I just stay in this PTF trade, it's almost a guaranteed bridge to nowhere. If I divert that cash elsewhere and actually invest in something I really believe in, I stand a much better chance of at least recovering part of my losses back - or even better.

Is there now even a remote chance that ABK will turn back into a prince? I highly doubt it, but looking at January 2010 options chains, it seems the $2.50 level is still significant.

What do I do? I'm going to sell my ABK bonds and get into Finlay ones. I'm going to wait until January 2010 to see what happens with ABK shares, hoping it'll test $2.50. With Finlay, I'm almost convinced there's a good probability of seeing a swift recovery - whatever it may be.

I have to admit it's very rare that any of my positions have actually gotten this bad. I think my worst position ever was the one that I used to blow up my forex trading account - a USD/JPY long that I still regret and will never forget. Other than that, I've been relatively conservative. Never again is what I say!