I do not like to get whipsawed and do so publicly. And yet, I am committed to implementing my own idiosyncratic system of limiting losses and responding to market influences in some sort of rational fashion.
Earlier Wednesday morning the market handed me my quick 8% loss on Expeditors International of Washington (NASDAQ:EXPD) and I sold my 45 shares at $36.8506. These shares were just purchased Tuesday, yes Tuesday, at a price of $40.1894. Thus, my loss was $3.34 or 8.3% since purchase. With this being the sixth position in my portfolio, I am implementing my 8% loss limit, and now back to five positions, my loss tolerance is increased to 16% with the 'final five' of my 20 position maximum.
I hope this all makes sense.
My sale of EXPD is not representative of any dislike of this stock. I find the numbers on this company intriguing, the consistency of growth, etc.. My sale is just a reflection of my own amateur attempt of limiting losses and responding to market influences. The volatility is just killing me though.
I know there are lots of readers over at Seeking Alpha who are pointing out the VIX levels and I am learning this the hard way.
Since my sale is at a loss, and I still am now at five positions (my minimum), I shall not be replacing this holding.
Disclosure: The author sold his shares of EXPD.