9/6/16
Bought BZUN at $14.25
Bought PAYC at 52.56
Bought CYBR at 57.67
This is one of those days I'd rather not talk about, I mean where do I begin...
On Friday, 9/2 Market Edge changed the market posture to bearish, so I went out Tuesday morning (Labor Day weekend) and bought not one, not two - but THREE stocks in the same day. My biggest failure investing has always been lack of patience, and I fell right back into old habits out of the gate. As I'll detail in a future posts, I cut that mistake off quickly and I am going to maintain discipline in the future. That is the only way to survive and thrive in the stock market.
As far as the purchases themselves go - BZUN was a complete mistake. It was well extended and the cup pattern that I thought I saw in the weekly chart was very sloppy and too deep. It is a thin stock, low priced with low volume. I stopped out for a 5.16% loss on the same day I made the trade.
PAYC had a breakaway gap on earnings which is a setup I love. If a stock consolidates from a big move like this, forming a flag or pennant pattern, and then breaks through to the upside it can make for a very powerful move. However, in this case the stock pulled back to the 10 wk dma and while it found support there was no volume to confirm that move. More importantly, this stock is not one of the top five in it's group. If there are better options available - there's a reason! Wait for an entry in the very best stocks in a group, not those that are lagging the leaders.
CYBR is another very sloppy chart. Furthermore, the forward earnings estimates are not close to what I like to see. When I looked at this and BZUN I realized that I WANTED them to work because they are IPOs. IPOs are capable of huge gains, and absolutely worth looking for - but not to the point that I ignore the attributes that make a stock a winner. This stock should not have been purchased.