After I got some moderate success on OPSW and GE in early 2004. I got a bit excited.
If I could use one word to summerize what I did my acitivies on stocks in those two years, it’s speculation. I did all kinds of speculations, luckily I did not get into really dangerous zone: margin, short and options. So my loss is still limited (a few thousand dollars each year). I did the following speculations:
1) Bet on earning: from PALM, Redhat (RHT), NetEase (NTES) to more speculative plays such as Look Smart (LOOK), the9 (NCTY), I never made a dime on betting ERs. The common scenario is I bought them right before the earning. The stock price already reflected best case scenario. Even if the company came out with a blow out (good) earning, there wouldn’t be much upside. But in reality 100% of time they did not beat the estimate by wide margin. So…I had to sell the stocks after earning to limit my loss.