Wednesday, August 8, 2012

DNKN - After Action

This is my after action report for DNKN.

**Quick disclaimer: as I just started this blog, there will be several entries that are only after action, as I had already purchased the shares.  I am not trying to make myself look better than I really am by only reporting good trades.  I will put every trade I make on this blog, good or bad.**

DNKN was bought March 9, 2012 at $30.74.  This trade was entered based on a the cup and handle formation that was formed from Oct to Feb (cup) and mid-Feb to March (handle).  The buy was signaled on a breach of the $30.25 level.

DNKN was sold on August 2, 2012 at $28.76, for a loss of $1.98/share or -6.44% before commission and taxes.  The sell was made as I finally pulled my head from my ass and realized that this stock had turned against me and would not be returning to profitability any time soon.  This was a great example of laziness and lack of discipline on my part.

The sell should have been made on July 20, when the upward trend line was broken.  That would have been somewhere in the $33 range, which would have been a nice 10% or so profit (before t&c).  Looking back at this I simmer in rage at my inablility to do the right thing here.  The signs were obvious, just lacking execution on my part.  The only positive to take away from this is that I did finally wake up and pulled the plug without further damage to my capital.

I would rate myself 4/10 on this particular trade.  I followed my position sizing guidelines and obeyed my risk rules.  I had sound reasoning for my entry but totally screwed the exit up.  By not executing the exit properly I turned a winner into a loser.  The key will be to make sure that I learn from this mistake and not repeat it in the future.

This material is provided for informational purposes only, as of the date hereof and is subject to change without notice.  This material may not be suitable for all investors and is not intended to be an offer, a solicitation of any offer to buy or sell any securities.  Following me in trades will lose you money.

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