Lesson Learned

Here are some lesson learned for me

01/02/2018

  • Previously I planned to swap BAC calls for $50’s GSE preferred stocks, however, when today BAC jumps by 1.5%, and GSE preferred stocks drop ~3%, I hesitated and thus missed a good opportunity to swap. By 01/03/2018, BAC drops and GSE preferred jumps to ~5%. I need to learn to move with alacrity.

11/30/2017

  • On Nov 18, I sold out 25 FAS Jan 18 ’19 $50 call at $16.45, with buying price at $7.904. I have made 100% return of about $20,000 position. However, when I sold it out, the FAS continued to rise and the premium rose to $20.20 on 11/30. I made this decision because I know FAS will rise on Nov 18 since the new Fed president’s speech on upcoming raise of rate, however, I learned that government might get shut down due to Trump’s tweeter on no deal with Dem. Also, FAS was suppressed for about 3 weeks from it peak in November, therefore, I told me to sell it when it approaches peak and once my position doubles. My lesson learned is: I should try to avoid my psychology “pend on” problem. I should have sold it in batches (50% then 50%) instead of all in one. Also I might need to wait a bit long to sell it.
  • I have missed the investment of TNA Call because I forgot about tracking it and also I was not confident to invest in a macro ETF. This ETF has increased by 42% since I first studied it. This is a huge miss for myself!!! I have learned from gurufocus that David Tepper also invest in macro ETF and in a large percentage of his portfolio. I should not be hesitate to do so.
  • Remember to always keep eyes on my WATCHLIST!

About Timeless Investor

My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.
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