Sinking With the Ship or Taking Off…

I bought my smallest share ever of a company ($387 worth) of Superconductor Technologies (SCON) a short while back as an experiment. The exeriment was to catch a short term gain after a large breakout in price. I caught a short gain, then it fell. I was going to sell but I liked the company, although the charts didn’t look good.

I roughed out a -40% loss for 2 months, and finally today the stock rose +33.72%. The headlines aren’t saying what caused this massive 3 hour increase in price, but it looks like I may actually get my money back and then some. The only reason I accepted such a high loss was because of my limited amount of exposure, unfortunately when the stock goes up, this small exposure doesn’t make me much $$$…but hey, at least I won’t be losing any!

Blog posted on: December 6, 2004

One comment on “Sinking With the Ship or Taking Off…

  1. Dave P.

    I’m new to your blog, but I really enjoy it! I am also a young entrepreneur that is constantly generating new ideas to make more money. I haven’t done much in investing though, and had a question for you. You seem like you don’t invest much money at a time. When you sell, don’t the trading fees and taxes cost you more than any profit (unless a pretty high percentage in short term) you’ve made? For example $387 invested in SCON…Even if you broke even, you still pay lets say $15 to sell, which means you’ve lost 3.8%. It also means that without counting taxes, you would have to gain 3.8% in the stock just to truly break even, right?

    Like I said, I’m new to this, but can you explain this to me? I don’t have thousands+ to invest, but I would like to start.

    Thanks!

    Reply

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