Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

umfan92

I Think I Made a Rookie Mistake....Help?

Recommended Posts

Well after much research, I decided I was going to buy Sprint stock (S). The reason was because it was affordable enough to buy 100 shares so that I might be able to sell covered calls on it. Nothing serious, just to get started and start experiencing different things. Well, I'm sure you all are already shaking your heads at what you have just read and I know. It was stupid. I'm never going to buy a stock based on it's price again.

 

But now that I have learned my lesson, I'm not out of the clear yet. I still own 100 shares of Sprint that I need to decide what to do with. They seem to be dropping a lot. Someone help me figure out what the experienced trader would to do figure out where it's heading. I don't really know how to do all the research yet. What would you look at? And what should I do with my shares?? I bought at 5.48 and it's at 5.22 more or less now. HELP!!

 

Thank you.

Share this post


Link to post
Share on other sites

Should bounce a little till 5.47... get rid of them at that price. Sell them off... get out of the pit.

 

Get your money out of the stock and in your pocket... you will get better opportunities.

Share this post


Link to post
Share on other sites

so what was the mistake?

- buying shares after doing a lot of research

- buying shares after doing a lot of research and then buying the stock because you could afford to do a strategy in it, and hence the research was a pointless waste of time

- doing a buy write strategy

- not having a stop loss

- or remaining a stock holder

 

if the mistake is having a loss - then you will make lots of them with a trading career

Share this post


Link to post
Share on other sites

Sprint is a NYSE stock:

 

NYSE, New York Stock Exchange > Listings > Listings Directory > NYSE

 

Sprint is part of the communications sector of stocks. Many stocks trade similarly to the market they are in. If you chart the SPY or the /ES, you'll see that the chart of those and the chart of Sprint is similar. The market reacts to general news, and economic trends. When there is a lack of news specific to Sprint, it may follow the market it is in, at least to some degree.

 

So if the NYSE 500 is trending down in general, Sprint might be trending down. Look at a one month, daily chart of the SPY and a one month daily chart of Sprint.

Share this post


Link to post
Share on other sites

Thanks everyone. Well Sprint went up a little bit today which is better than going down any further. I think I'll wait a while and see what happens. (although I know one of the worst mistakes is trying to wait until it goes back up and end up losing 50%) I guess it wasn't all bad. I learned a lot and now I know that I have to keep researching and learning more.

Share this post


Link to post
Share on other sites

The research that you have done is almost immaterial if the recent drop in price is a concern to you. If you are making a long term value investment, and are going to hold the stock for years, then price moves like these are meaningless.

 

If you don't plan on holding the stock for years as a long term value investor, then it seems to make sense to base your decisions on what moves the price short term. It's difficult to predict how news will move the price short term, so many people just avoid being in the market during news releases, and wait to see what is going to happen.

 

You need to stay informed about what the general economic outlook is. If you are pursuing a "Long Only" strategy in a retirement account, and the economic news continues to be bad, it may be difficult to trade.

Share this post


Link to post
Share on other sites

I'm a newbie at this, but it looks to me like it's in a slight consolidation phase, but it looks to me like it will keep going down. If it goes down anymore it's breaking it's support, so that will let you know what to do tomorrow.

Share this post


Link to post
Share on other sites
Thanks everyone. Well Sprint went up a little bit today which is better than going down any further. I think I'll wait a while and see what happens. (although I know one of the worst mistakes is trying to wait until it goes back up and end up losing 50%) I guess it wasn't all bad. I learned a lot and now I know that I have to keep researching and learning more.
You didn't mention what you learned and not to be harsh but you're missing/ignoring some of the most important ones - mainly protecting your captial. You know waiting to see is a bad idea so why are you doing that? :crap:

 

Your research/analysis should give you an idea of what is probable for the stock as well as identifying the entry,exit and stoploss; place your stop loss when opening the position; buy channelling stocks if your intention is income from writing covered calls - unless the stock is a long term investment. That's just my opinion and I may be wrong :cool:

Share this post


Link to post
Share on other sites

Ok well after much back and forth, I ended up keeping the stock. It was going up the last time I posted here. I was hoping it would keep going up but it took a horrific downturn and is now at 5.08. Does anyone have any advice? I know this was stupid, but I guess I haven't learned yet. :(

Share this post


Link to post
Share on other sites

I think just about everyone on here has automated stops to prevent big losses. The resistance level should be around 5.05 if I remember correctly. But it looks like it's getting done with a head and shoulders formation. It's pretty iffy, if it drops below 5.05 it's going to crash really fast.

Share this post


Link to post
Share on other sites
Ok well after much back and forth, I ended up keeping the stock. It was going up the last time I posted here. I was hoping it would keep going up but it took a horrific downturn and is now at 5.08. Does anyone have any advice? I know this was stupid, but I guess I haven't learned yet. :(

 

What was your original plan?

What IS your plan?

 

get a piece of paper and write them down (ie commitment) if you haven't done so.

 

 

Before you have a plan, there is no use making a progress review.

If there is no progress review, there is no need for plan revision.

Share this post


Link to post
Share on other sites
Ok well after much back and forth, I ended up keeping the stock. It was going up the last time I posted here. I was hoping it would keep going up but it took a horrific downturn and is now at 5.08. Does anyone have any advice? I know this was stupid, but I guess I haven't learned yet. :(

 

 

Should bounce a little till 5.47... get rid of them at that price. Sell them off... get out of the pit.

 

Get your money out of the stock and in your pocket... you will get better opportunities.

 

It is testing evens of 5... looking worse. Whether it goes up or down... get out as fast as you can.

Share this post


Link to post
Share on other sites
Does anyone have any advice? I know this was stupid, but I guess I haven't learned yet. :(

 

Feel the pain. Let yourself feel the pain. You are in denial, and not allowing yourself to accept the reality of the situation. The pain will help you decide. Feel the pain.

Share this post


Link to post
Share on other sites
Ok well after much back and forth, I ended up keeping the stock. It was going up the last time I posted here. I was hoping it would keep going up but it took a horrific downturn and is now at 5.08. Does anyone have any advice? I know this was stupid, but I guess I haven't learned yet. :(

 

You know… you're right… you haven't learned yet…

 

You entered a trade that you didn't understand, during a time in the market that you didn't understand. You also took a trade (that you didn't want) based on what you could afford, to experiment with some strategy that you didn't understand (obviously). You were told to exit the trade (which you didn't). You were told to hang on to the trade if you believed in your research (which you did do… although; I doubt that it was anything more than hope that kept you in).

 

If you want to experiment and throw money at the experience, I personally have no problem with that (for so many reasons)… it's a learning experience. The market is a tough place to make a buck, and getting your a** kicked is actually helpful in many regards. The number of times this happens before you start to catch on will dictate how long you remain.

 

You may consider that "the market" has handed you a raw deal, but nothing could be further from the truth. You've done this to yourself… understand this (in a meaningful way), and the battle is half over.

 

Every person (with some experience) who read your response knew what was going to happen: "you were going to follow this trade down"… everybody knew it. We all knew it because to one extent or another we have all been there. In life… "hope" is a good thing… it keeps us going from one day to the next. In the market… "hope" is not allowed… it either "is", or it "isn't".

 

As a trader, you need to come to the understanding, that once a trade goes against you… it's time to get out. Once the covered call strategy failed…"it's a failed trade"… no if, ands or buts… get out. Sprint (S) may catch a bid, and may rebound… who knows for sure. I have no advice as to what you should do now… it's your call (it always is). On the other hand, if you've entered the trade as a long term investor, and you believe in the story… certainly, hang on…with the understanding that there needs to be a limit to the pain.

 

One of the best trades I ever made, and one that has stuck with me through the years, was the first time that I had to "chew my leg off" to exit a trade. It hurts something awful, but once you are free… what a relief (generate some cash… live to fight another day).

 

Best of good fortunes going forward.

Share this post


Link to post
Share on other sites

That's a little blunt, but he's absolutely right.

 

However, I think it's a good thing that you made this mistake. No one can make much money off of 548 dollars. Even if it went up 10% this month, that's only $54.80 with commissions of probably $20.00 round trip leaving you with a total profit of $34.80. That's not worth the stress that you seem to be going through. But this is why I say it's a good thing. You learned something didn't you? The worst thing that could happen to you is that you jumped into this and had success, because it would have been luck, and then you might risk more money next time, and really be in a pickle.

 

I assume you're between 18 and 21 because this sounds really familiar to me when I was in college and wanting some extra cash. However, if you really didn't need the money, which you shouldn't have if you put it in there. if you did need the money, you're in this for gambling, your state's scratch-off's would give you better odd's, anyway, if you really didn't need the money, then just leave it. In the long run it will eventually go up. Probably at the rate of about 7% a year or so, maybe you could move it to an IRA and get a tax right off for it. I want to say I got 20% discount on my taxes for my contributions to my IRA.

 

Summary: In an optimistic/realistic sense, this is a good thing. Hopefully you learned something. But I do say thank you, because I may try to swing trade this on the way down:2c:

Share this post


Link to post
Share on other sites
Watch the stock tomorrow, looks like a morning doji star is forming, you might be in luck!

 

your "analysis" is based on what you wish to see...

not seeing what the market is showing you.

Share this post


Link to post
Share on other sites

I don't wish to see anything, just looked like a possibility to watch for if the there was a positive candle formation today. It of course didn't form, but if it did... Anyway, I think the only reason it went up at all was a "head and shoulder's" completing, which I had stated earlier. Would you agree with that? Not trying to act like I know anything, just trying to have my theories critiqued.

Share this post


Link to post
Share on other sites

umfan92, may i suggest another stock for you to research? Universal Insurance Holdings Inc. (UVE) is great fundamentally and nearly great technically. Additional plusses are it pays a dividend and has options coverage. In your situation I would buy 100 shares limit $4.60. Here is an article to get you started in your research. Good luck!

Share this post


Link to post
Share on other sites

I can't give you any golden advice because I don't believe in advice. The responsibility for your experience is yours. The only person you'll really listen to is yourself. And it seems your advice to yourself has been flawed. So. Please read the following several times in different moods and think about it.

Whatever you do, you must know how to plan. Are you a builder? Where is your plan?

Are you a student? What is your plan. Are you a doctor? You need to know how to proceed. Stop immediately! No, really, STOP and rethink what you are doing. I am the proud owner of several blown-out accounts so I can tell you that you are doing exactly what I have already done and it does not work. Perhaps you could read Jack Schwager's series of books about Market Wizards. ( read several times, it takes awhile to sink in ). The very best of good luck to you. I would love to read in time that you have become successful. :)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
    • Does any crypto exchanges get banned in your country? How's about other as Bybit, Kraken, MEXC, OKX?
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.