Deflated, But Not Defeated...

I was going to name this post "Futile Trading Attempts: The Daze of ForexDiva's Life... My Inside Story on Wake the Neighbours Smokin' Hot Trading Turned Freezin' Cold." I could now write a book on how to successfully lose money in the stock market... Yes, my hot air balloon of a portfolio experienced a shocking wardrobe malfunction just in time for the Super Bowl, getting its fair share of button-popping deflation.

But I have a new plan of action. I sold another partial lot of BAC and decided to nurse another position - jumping into MS. I bought MS at $26.20. I had fears that BAC might become another Enron in the making and decided to decrease risk by taking partial profit on this position. It wasn't the best time for me to do so, but I think MS is in a much stronger position than BAC at the very moment.

There's plenty of profit potential in the sea! I might be a bit of a little mermaid swimming in a sea of sharks, but I've got to turn my financial vulnerability into profit opportunity. I traded myself into this mess; I've got to trade myself out of it. And the worst thing I did was stand still these past few weeks.

If we're not getting our profits with one position, we have to try a new one - and that one could be smokin' hot. My reasons for getting into MS again are similar to the previous time I was in this trade - lots of cash per share, more cash than debt, trading below book value, etc. - only, this time, I also see that the put options on MS are more or less exhausted. So, this is a good time for me to be in the trade, especially since selling pressure is decidedly much intense than before.

My second bit of insight was I am not focusing enough on recovery. Before we can run, we need to be able to walk. Yes, I just quoted the very famous Cantonese proverb. I'm going to spend the next two months on recovery - doing everything I can to recover my disastrous portfolio.

I'm going to use mainly $5 and under plays, cramming as many shares into this Five Car Parking Lot of mine and hopefully allowing logic to rule my trading rather than being emotional and impulsive (my fortes, I must say).

Am I emotional by nature? Yes. So maybe there'll still be some Wake the Neighbours type trading going on. I hope so!

I love Wake the Neighbours type trading...