After the close today I recorded a video which reviewed the markets and some stocks that looked like good trade candidates. Below is a cutout of 2 minutes and 17 seconds where I was discussing shares of Cheniere Energy ($LNG) please view it to get the context.
Almost as soon as the video went live, $LNG announced they were doing a secondary offering of shares and sellers didn’t wait to punish the stock, it quickly dropped from the 4PM close to an after hours close of 10.60- a quick 9% loss for those who held overnite. I am one of the people who was holding prior to the news, why wouldn’t I?
The chart looked great, there was a large short position which seemed to be positioned incorrectly and news headlines have been positive lately. I mentioned that if conditions were ripe the stock could see $15/share this week!! I also mentioned how the stock has a history of being a “difficult heart breaker”. The video concluded with me expressing that I didn’t want to sound too bullish and”always play a strong defense and keep share size reasonable.”
I did manage to sell the stock in my trading account at $11.14 in my trading account, but I am still holding shares in my IRA (f*ck, sh*t, godd*mnit!) I hate losing money! But I will get it back, I always do!
Lessons learned? I will talk about them on twitter (really stocktwits) tonight at 9:30PM. Feel free to chime in with positive lessons we can all learn from.