Pitchstone Exploration – My Mistake

by JDH on March 31, 2007

It’s time to admit I sold at the wrong time and get back into an old favorite, PXP.V – Pitchstone Exploration Ltd. I owned Pitchstone for quite a while, but on March 20 I thought it was moving down, so I sold at $3.00 to lock in my profits. Here’s the chart.


Amazingly enough, I managed to sell at almost the exact bottom. (What an idiot).

I looked at the chart, saw that it was going down, so I sold.

In hindsight, I should have done two things:

First, I should have waited for the up trend line to be violated. (The line I drew was violated, but the longer term trend line is clearly still intact).

Second, and most importantly, I should have looked at the RSI, which was clearly in bottom territory, which is the time to BUY, not to sell. If I wanted to sell I should have done it back in February as the RSI increased over 70. I would have missed some of the subsequent blast up (which didn’t hold), but I could have re-deployed my capital elsewhere.

Live and learn, my mistake, I’m putting Pitchstone back in the portfolio.

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