Trading Journal Entry - In Boeing Stock (05.18.20)
One of my biggest flaws as a trader is having conviction in my trades. As of today's closing price Boeing shares were up double digit % ending near $136/share at close. For those who follow my trade this is a significant win. However it is not to be the case as I sold a lot earlier than I should have and capture only a small gain since my initial buy in was high.
Should I have held the shares?
It is after the trade has been executed and price movement went in the direction that I could have benefited that would result in some regret. The reality was Boeing has been beaten down for quite some time and today it finally saw some demand. The airline and travel industry all benefited in today's bull run.
Chart on the daily had prices in a descending triangle but decent support as it has held above 120 for some weeks. The fail breakdown of the 120 as of Friday led to the current rally we saw today. Although last Friday prices was as low as $113 the reality was it closed at or close to 120 which made it easier to squeeze shorts into the current news of Saudi Arabia Pension funds investing over $700 million into the stock. The move is so strong that likely there will be further continuation on the bull side for the stock.
Yet I remain skeptical of a full return to business for Boeing as airlines are continuing to face massive headwinds. Note we have not heard Saudis loading up on airline stocks just yet. The challenge I faced was more towards controlling my fear of losing and selling at or slightly above breakeven. If I had held I would have followed the uptrend through the end of the day. Not going to chase but have to learn that although I traded this stock in anticipation of holding long term I fail to hold when I saw it being profitable. The fear of losing any gain haunted me. As I sold today I reminded myself that last week when share prices reach $133 it only lasted for minutes while today it was a solid buy day. I should learn to leave emotions out the door and trade what I saw.
What was there today was BA gaped up and follow thru held with little to no retrace in price. A great day for bulls but I missed it. Have to let go of this and move on to other trades as I now watch it from a far. I will not buy back since I have experience playing catch up and getting hurt by it. If curious I sold the shares at $131 early in the morning.
I am not a financial advisor and all this post information is for entertainment purposes only.