I have purchased the stock back in July 2012 at a price of $0.53. It has since been a spectacular rise of 100% to today's closing price.
However, I have liquidated my position at a price of $0.765 just one and a half months ago (although its due to my uncle's request for cashing out), thus missing out on the substantial gain that followed, and also missing out on my first 2 bagger stock.
As much as I try to keep my emotions in check, I still inevitably feel a sense of 'wasted chance' and a tinge of 'I should have...'. Of course, this is 20/20 vision with hindsight and does not bring about any tangible benefits.
But it is important to study the episode and distill key learning points hone my investment strategy, framework and emotional stability. Here are a few points:
- Always maintain confidence in my stock selection and develope conviction to my stock pick. Believe in one self analysis, and always remind myself that one has no control over the duration it takes for a good stock to be appreciated by the market and rise, which could be due to various reasons such as capital injection from strategic investor (breadtalk) etc. So I just have to be patient and remain convicted.
- Recognise overall market trend. It is important because it will affect the margin of trailing stop loss to be set. In Breadtalk's case, I set a trailing stop loss of 8%. However, it could have been better to double the margin to, say 15%, in view of the market macro trend that is rising. This will ensure I do not miss out on the ensuing rally.
- Be sharp and observant towards corporate development news, such as major stakeholders increasing holdings that could act as catalyst that boost the stock price. For Breadtalk, Mint Holdings increase stake signifies the merit of the stock. Subsequent swing (eg. there was a day with $0.10 fluctuation) in price should provide a good entry point.
- Keep emotions in check. Do not be overly affected by the rally after sale, as opportunities are abound in the market and one can always look for the next value play.
Hope to find my first 2 bagger counter soon!