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Sold PRGN at 4.11

JJL posted on 09/17/09 at 12:50 AM (Note posted 6 days after the trade)
Trades | Notes | Blogs
Users Bought (30 Days) 11 (100%)
Users Sold (30 Days) 0 (0%)
Market Cap 248.12M
52-Week High 6.81
52-Week Low 2.25
10 Day Volume 1.12M
P/E 2.79
EPS (Trailing 12 Mos.) 1.84
1Day 5Day 1Mo 3Mo 6Mo 1Yr

Transaction: Sold
Symbol: PRGN
Quantity: Not Shared
Price: $4.11
Value: $Not Shared.
Stop Order: No @ $
Target Price: $
I sold this stock early. But I was deeply in margin so I wanted to get out of a position fast. I only sold 40% of my position so I still have a large portion of the company. I doubled my postion at 3.75 and then sold of 40% of my position at 4.11
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Posted by JJL on 09/17/09 at 12:50 AM

Tag It | 1 user tagged it: PRGN, stock, sell

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Padawan

Member since: Aug 09
Trades 7
Trade Notes 0
Blog Posts 0
Burnet, TX
Padawan
Posted September 18, 2009 (12:38PM)
Say friend,  I read your notes on PRGN.  Good job on the profits.  You also mentioned you were deeply in margin.  I use to margin trade really with the idea that if I can make a greater percentage of profit than the percentage I am paying for the loaned amount.. well that is COOL.  The problem is this really isn't a sound philosophy.  The truth of the matter is that we may be able to predict the direction of the market some.  But at some point the market has something unexpected happen.  So, in a scenario where the market is dropping rapidly,  if the investor is dealing with his portfolio dropping just like ever other stock and he is using margin, he will have to make the margin calls.  And this means either putting more money into your broker account or selling off your stock when the prices are low.  This can destroy a broker account in a market correction.  Which there have been more than one correction in the last decade. 

You can actually make more money on your stocks even during a bull market, by having a lot of cash available to invest.  Cash is king.  A better approach is mastering buying and selling on the swings, which when done correctly lowers your cost per share.  This approach can prove to make you exponential gains with correct discipline and money management.

After I lost over $10,000s in a correctional around 2000.  I read a book called, How to make a 1,000,000 in the stock market automatically by Robert Lichello.  I started running the numbers in excel with about all of the stocks, I had researched to that point.  The results amazed me!  Anyways, perhaps more later in this subject matter if you would like.

I like to now keep about 50% in cash.  That may sound like a lot.  But it is worth it.  My whole trading life is filled with success in the markets, but I love my approach more now.

Take care,
   Padawan
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