Shake Off Stock Tilt Phil Hellmuth

How’s that stock market volatility treating you? I took a pretty bad beat and I’m here to whine about it. Sorry in advanced.

A few months ago, I jumped into a very volatile tech stock. High risk, high reward I thought, no problem. Pure greed made me stray from my normal sell stop discipline. Bad Buck! I endured a 9% drop, an 8% pop, and several 3% swings. Last week, I couldn’t take it much more so I calmed my anxiety by adding my sell stop order back. A few days later I got stopped out of my position. I slept better because volatility was quite high. Things looked bleak and one of their partners missed their earnings. Roller coaster over right Buck? Wrong!

Their earnings came out and the stock price rocketed up over 20%. I struggled with “missing out” a few times. “Damm I should have stayed in! Why did I put in my stupid sell stop order! Why is the stock market against me?” Yes, illogical I know. Now that I’m out of tilt mode and moving on, what did I learn?

Stock Tilt Takeaways

I can’t have my cake and eat it too. I didn’t like the volatility and I was disciplined enough to implement my sell stop. My error is not adding it right after my buy. I suffered through a month of volatility for no reason. If I want to be disciplined and use sell stops, use it from the get go.

If I want to play with high beta tech stocks, I need to consider increasing my sell stop price. Over the years, I’ve missed out on some huge gains because I got stopped out too early. With this tweak, I hope to ride the high fliers, but I need to be willing to stomach the bigger daily swings.

Final Thoughts

I can’t complain too much because if I really believe in the stock, I can put my money where my mouth is and re-enter the position. My frugal self is struggling with it because I remember it was selling at a 20% discount just a few days ago. Slowly moving on, just dealing with a minor case of the couldas, wouldas, shouldas. Speaking of being on tilt, the spoiled brat of poker Phil Hellmuth knows a thing or two about it.

How do you deal when you are on tilt?

Stay Inspired!

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11 Responses

  1. Buck, you’ve got to tell us what stock is this!

    I hate stocks, hence I don’t try any more!

  2. krantcents says:

    Although I have a few stocks, I stick with mutual funds. My asset allocation and my overall plan helps me through the volatility. If you stick with a plan it is easier to get through the ups and downs of the market.

  3. Arlee Bird says:

    Never dabbled in the stock market before and now I’m in no financial shape to do so. I’d like to if I had the liquidity to play with. Soon I hope. And I wish big bundles of uptrends coming your way.

    Tossing It Out

  4. A Blinkin says:

    I’m what you would call the oblivious investor. The less you know and the less you follow, the better you’ll do (not always the case but good to keep you sane). I started investing in 2008 just after I graduated. It’s been nothing but good for me.

  5. That’s why I hate stop loss orders and prefer to go with protective put options. You can have the safety of knowing that you can only lose so much, but still be able to participate in gains. You can sleep at night even with the volatility.

    • Buck Inspire says:

      I really need to get my head around options. The big road block is if I can’t handle stock trading using regular techniques, won’t I do even more damage using instruments that have more leverage and risk?

  1. August 9, 2012

    […] “Shake Off Stock Tilt Phil Hellmuth“┬ápresented by Buck from Buck Inspire. […]

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