Closed Trade : GEM

GEM has been a bit of a pain trade for me.  Frankly I'm glad it has gone.  I realized shortly after I had bought it that they were undertaking a rights issue at a price below my stop loss.  Even then I had a few opportunities to exit without taking too much of a loss but instead I carried on with the original plan.

There is probably some virtue in sticking to your plan through thick and thin but when the circumstances of a trade are radically altered like this I try to manage my way out of it.  Sometimes I do quite well and sometimes not.  In this instance my loss was 1.5 times the intended maximum which isn't too bad when it happens only sporadically.  If I were regularly taking losses this size I would think I had to alter my plan.  As it happens I have slightly altered my plan in the last week or so to refine the way I manage my hard stop/time stop but it would have only saved me a cent or two here and didn't alter any of my other open trades either

Chart courtesy of www.IncredibleCharts.com