RH Has been in a big pull back this week. As you know I own 2000 shares. After doing a lot of research I still believe the stock will be going higher. However, sometimes you really need a really strong stomach!
On Friday I had an early basketball practice with my high school team so I wasn’t gonna be near my computer. I’m in RH at $102.78 and it was opening Friday in the $91 area. After having a great year and speaking with my account I contemplated selling Rh before the end of 2017 for a tax write-off by cutting down on some of my gains. When the market opened RH was continuing it’s pull-back. Before I left to practice I entered a “Stop Loss” order to sell 1000 shares at $87.10, that’s half my position. I’m not big on “Stop Loss” orders with RH because it’s too volatile. You never know when the stock will dip to get executed on the sell order and bounce back up. Well, the stock did dip to my sell order and I sold 1000 shares at $87.10. However, it didn’t bounce back and it closed at $86.21. I took a $15.68 hit on the 1000 shares I sold and I still own another 1000 shares. A little more of a write-off than I wanted but this is the game we’re in.
12/11/17 – Buy 1000 Shares RH @ 102.78
12/29/17 – Sell 1000 Shares RH @ @87.10
Loss -$15,680
If you look at my “Trade History 2017” you will see I only had a loss (Red) in 2 week’s results. One being week ending 4/21/17 and the one reported today, the last week of the year. I don’t like taking any loses but since it was the last week of the year I figured I would. I have a feeling I’ll be back in RH soon.
I found a financial writer who is very high on RH. His name is Lawrence Meyers. He writes for TheLibertyPort and he is a holder of RH. I wrote him an email asking him if he’s worried about RH. He returned an email to me the same day.
HI Steve —
Thanks kindly for your note. I am not worried at all. Mostly because of this:
http://moxreports.com/category/rh/
I would like to thank everyone for reading Main Street beats Wall Street in 2017. When trading options and investing in general, it’s very difficult to make the correct decisions all the time. I urge you to continue your studying, educate yourself, be very careful and don’t get greedy. You must develop your own trading and investing style according to your own situation and risk tolerance. Always remember, I do not make recommendations where and how to invest YOUR money. I try to teach what I know from experience, and be transparent with what I do. I hope I can help educate you learning from what I do, both good and bad. With investing some of the best things learned are from moves gone bad.
This is not my year ending report; I’ll be getting to that.
Again, I would like to thank you for reading and I would like to wish everyone a very Happy & Healthy New Year.
Steve
The Options Coach