Skip to main content
Update
The boards are getting a new home!

We're pleased to announce an update is coming to the community boards.

Sunday, September 25th: We are migrating the boards to a new platform. The site is currently in read-only mode and we will bring it back online as soon as the migration is complete.

Fool.com | The Motley Fool Community
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0

Hopefully by putting pen to paper – or fingers to keyboard, more accurately – I’ll be able to reduce the likelihood of repeating the error I make with AKAM in my CAPS picks. I went short on AKAM because I believed the stock would tumble 5-20% when Q3 earning were announced; causing the P/E ratio to move from 24 to 100+ due to an acquisition tax shield rolling off the TTM. Well the event occurred and the stock retreated about 3% but I didn’t close the trade. So what could have been a small gain is now a larger loss as the company continues to perform well and the event I was trading against is now months old.

 

Lesson Learned: don’t hang on to an event driven trade if the underlying asset doesn’t react to the event in the manner predicted. i.e. Trades should not become Investments.

 

Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.