Thursday, December 22, 2011

Closing Logitech

One more trade gone bad. My worst trade of the year.

I bought Logitech (LOGI) as a trade on return to averages. After stock went down about 20% I thought that it should return back to 200-day moving average. Market didn't agree with me.


1. There was sharp fall in most tech in the middle of the year. It was a good hint for me to close the position. I ignored it. My bad.

2. I misjudged market reaction to the failure of Google TV device, produced by Logitech. I thought that projected sales of the device weren't that great in the beginning and failure wouldn't count for much in the balance sheet. Market ignored the financial side and decided that failed hype should be punished.

3. Last, but not least. I need to put strict time limits for any technical/quantitative trades. It creates discipline which trumps conviction in the long run.

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