I am all about having my eggs in many different baskets. I invest in Index ETFs, Active/Passive Mutual Funds, insurance products and even individual stocks in my Dividend Investment Portfolio. The only basket I am missing is a speculation one. I used to have an account where I did that but I largely ignore it for now.
Over the past 30 days or so I was convinced that purchasing shares of Sprint would be a fantastic idea since they were coming out with the iPhone. Well I am lucky I procrastinated:
You may have to zoom into the screenshot to see how bad the stock is doing, but needless to say it is down a lot. Do I believe the stock will rally back? Yes, but I haven’t bought into the speculation basket just yet. I realize that this type of thinking will prevent large upswings in my portfolio.
It seems that my gut is usually wrong as my tiny and mostly ignored speculation account is down…a lot. This is the reason I mostly abandoned the idea that my gut knew anything.
For those of you who trade individual stocks do you trade on news and gut feelings? or do you just focus on pure metrics?
For those of you who may care the reason it is down is that an analyst got into a fight with the CFO during a earnings meetings. The crux of the argument was that instead of just accepting the rosy news that was being pushed (like this guy would believe lol) the analyst was specifically pushing back as to where is the money coming from to upgrade to handle the new iPhone users.