If you at all follow the stock market you know it’s been crazy these last few weeks. Especially with that little correction that we had. What did I do? Warren Buffett’s quote, “Be fearful when others are greedy. Be greedy when others are fearful.” Rang a bell.
On February 6th, 2 days into the correction I took my only positive position at the time (I had recently sold several other positions and reallocated money to make new positions and cost average down some positions) E.L.F. cosmetics and sold all that I had. It was a small position worth $300 and change and I took that and bought AAPL stock at $157.51, it later dropped lower than that in a second dip but prior to that it hadn’t been at that price since October 2017. I cost averaged down my largest position CHK, cost averaged down ATRS, and cost averaged down TTS. Now unfortunately at the time I was not prepared for this correction. I had no extra cash lying around to put into investment accounts, I did not have anything I could really sell to get the cash to take advantage of the correction and I did not pay attention to the market as much as I should’ve, and my attention was directed elsewhere (school).
My actions would’ve been more calculated and drastic had I been prepared and prepped for this event. Let’s see how it panned out though. I sold ELF 15 shares at $20.01 = $300.15, today it trades at $20.84 so that results in a lose of $12.45 had I held the position. I bought AAPL at $157.51 and it currently trades at $173.78 = a gain of $16.27. As you can see I already came out on top had I not invested the other portion of the sale proceeds but let’s look at what that did. I bought 25 shares of ATRS at $1.92 and sold them all at $2.23 on February 15th, a $7.75 gain = 16% short term gain. I bought 27 shares of CHK at $3.12 which has been fluctuating tons since then, but fortunately CHK beat earnings big time and shot up ~ 25% yesterday. As I am speaking shares are at $3.35 = $6.21 gain over the duration of holding them. TTS had the opposite happen and did not do well with earnings. I bought 2 shares on Feb. 6th at $8.44 currently trading at $5.50 – a net loss of $5.88.
So overall a split-second decision and action that I made before class/ walking to class led to a $11.90 increase over 17 days (12 trading days). Now why does anyone give a shit about a less than $12 increase?! They don’t but I also don’t have big money, but that also was a 3.97% increase in under 3 weeks. Extrapolate that out and that’s 85% APY now those are some numbers people can get behind! Now looking back, I probably should’ve held out for 2 shares of AAPL but hindsight is 20/20 as they say.
Hope you guys enjoyed that little victory in my investing career! Let me know what you think or share what you did during the correction.