Rule One Investing Blog

A big part of the Rule 1 method is learning when to buy and sell the company. I haven’t traded much in the past 1.5 years and haven’t been watching the signals. Well, I stared again around late august and have been monitoring my AAPL and CWTR stocks off and on. I looked into the state of my stocks today and saw a 14.21% drop in the price of the stock. Wow! that sucks. But what can I learn from this?

I should have already been out!

Looking at the signals of the stock (which I’ve included below) I can see that the MACD says less people are buying then selling on Sept 28th, 2009 (according to Google) and October 16th (according to Yahoo). Then on October 16th the 50 day moving average cuts above the stock price. Those are the two indicators that I’ve been using and really like their pattern. And based on those signals I should have got out on the 16th or 19th of October for around $7.57 for a profit of $41.75. (woulda, shoulda, coulda doesn’t get you very far in the stock market though!)

That all being said, why am I still in Cold Water Creek (CWTR)? Good question. Mainly because I wasn’t monitoring my share / companies properly. It only takes 15 minutes a day which is completely true but I just stopped monitoring. Lesson learned and luckily it’s only a $41.75 lesson (so far). I will onto my stocks for now and wait to see what happens. Now I’m going to be monitoring my AAPL stocks so I don’t make the same mistake twice!