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Joseph P. Porter
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I am a retired college faculty in Philosophy, with specializations in Ethics, Socio-political Theory and Rational Choice/Decision Theory. My teaching focus was on Business Ethics, Medical Ethics and Logic. After retirement I freelanced as a Grant Writer/Fund Raising Consultant. I have taught at... More
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Joseph P. Porter's Instablog
  • Sometimes I Get Things Right. 0 comments
    Feb 5, 2013 3:33 PM | about stocks: DCIX, TCAP

    Today (February 5, 2013) Diana Containerships (DCIX) took a significant hit, to the tune of ~ 12%. As was the case when Triangle Capital (TCAP) took a significant hit last year I was upset - everything else in my portfolio is up, and the losses to DCIX was enough to offset my gains, and then some.

    Whoa.

    As I started picking up the pieces, I checked my broker's website (Merrill Lynch), and discovered something really amazing.

    Turns out that about a week ago I had put stop losses on some of my bigger profiting companies just to protect myself from market whims. Also turns out - as luck would have it - I had set a stop on my DCIX at a point where it would protect half my profits.

    The stop worked, and my DCIX was sold @ $6.70. It is (as of this writing) around $6.09.

    Whew!!!

    Many times my colleagues have chuckled at my use of stops. "Not necessary!" they said. "Waste of time!"

    Who's laughing now?

    Protect yourself - put stops on your valuable holdings. The DCIX melt-down was not precipitated by any publicly-released information - although I do know what contributed to it, I shall avoid mentioning anything about that. You never know when something is going to happen.

    Disclosure: I am long TCAP.

    Additional disclosure: I do intend to establish a new position on DCIX within the next 72 hours.

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