We lost our shirt on OEGY (Open Energy Corp.), selling out at just over 36 cents a share when we'd paid 66 cents. An ugly, crippling blow to our fledging trading portfolio. A classic case of poor planning. By not establishing parameters for exit at the time of purchase, we sat back and watched our assets fade away, helplessly torn between fear and greed.
The GOOD news: We got out at 36 cents. OEGY closed Friday at 24 cents. Looks like we dodged a bullet getting out of Open Energy. Even better, the hot tip we bought with our proceeds, DISK (Image Entertainment), is up a few pennies, to $2.18 a share from the $2.15 we paid. Our source says hang on, a new merger deal to replace the recent failed one is forthcoming.
We'll hang on a while longer with DISK. I like the way it acted in last week's volatile market. But if Image Entertainment drops below $1.75, we're out. In the immortal words of Dirty Harry (Apologies to the writer who scripted him), "A man has to know his limitations."
So do traders.
Here's a chart of OEGY
And one of DISK
Both charts courtesty of ETrade.