The stock market in the past year or so has been a wild ride for everybody - professional investors and personal investors alike.
Personaly, I have had a lot of trouble with my investing strategy lately.
Anybody can blame the market on their bad trades, and I am not going to do that.
I admit that I made some bad choices, regardless of the market.
And that is exactly what I am going to talk about.
It seems like my recent trades, which analytically appeared sound, have been turning out losers.
After my most recent blunder with General Mills (GIS), I decided to trade like I used to trade - on instinct, rather than over analyzation.
The stock market can be very irrational, and you have to adapt.
I ended up buying Guess (GES) Mar08 $35 calls on Tuesday, just before their earnings were going to come out after the bell.
I had a feeling their earnings would be good.
They were reporting their 4th quarter earnings, which includes holiday sales.
Also, the retail numbers lately have actually been good.
The chart looked like I had some room on the upside, so I bought the calls for around a buck, when GES was trading around $34.
The earnings came out good, and I breathed a sigh of relief.
However, to my dismay, the market sold off the next day because everyone wanted to capture their profits.
GES went down with it.
I hung in there, and today (the last trading day before expiration), GES pulled through.
I sold my calls when GES was around $37.
50 and made a 150% return.