Missed Opportunity - Positive Effect of Good Earnings
I bought $AEM SGD(AWX.SG$ on 3 Nov 2021 at 4.20 anticipating that the earnings result on 10 Nov 2021 will be better than expected. The actual earnings and guidance were positive, triggering the stock price to rise. On 11 Nov 2021, I sold my holdings at 4.36 and was delighted. However, the stock price continued to rise to more than 5.00 due to analysts upgrading their target prices. Thus, my biggest mistake was that i did not forsee that a better than expected earnings will usually trigger a string of analysts' upgrade in subsequent weeks for a well covered stock. I have learnt my lesson and will not be so eager to sell so fast after a positive earnings report in future.
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bullrider_21 : I believe you sold your winners too early because you kept your losers too long. You should cultivate the habit of early cutting losses on losers and selling your winners later.
snoopee bullrider_21 : how to learn/cultivate this habit?
Upncoming1841 OP snoopee : My own learning point is that if a company reports good earnings and also provide positive guidance for their business going forward, I will hold on to the shares. I will sell only if there are new negative news or the stock price have gone up too much and become overvalued as compared to its peers.
bullrider_21 snoopee : Yes. Cut loss if your loser falls about 10% from your buy price. It's important to preserve your capital. You don't know how much it will fall