Nov 16th, 2016 might have been just another day for you unless if you had money in cannabis stocks. All stocks went parabolic only to crash in the last hour of the trading day. I was up around $200,000 at the peak when I was sleeping. When I awoke I was up around $170,000. By the end of the day I was up only $130,000. “Boo hoo,” right? Still, money is money regardless of how much you start with. Sure, negative $70,000 would have been much worse but it still hurts.
Since then I’ve been thinking about that roller coaster of a day probably every day. I suppose I should have sold everything but the mindset that had you stay in the game for that long is also the mindset prevents you from selling.
My game plan was to hold these stocks long-term. The flaw in that strategy is that these stocks are short-term stocks for many. It doesn’t matter what I believe it’s what everyone else is doing that matters and everyone else is looking for a quick profit.
The hold strategy did me well in the beginning. While I got caught holding much of the bag, there were many who sold way too early. If you sold Canopy Growth anywhere from $3 to $6 you would have missed out big time and not have had a chance to buy back at a lower price.
Some thoughts since then…
Lesson #1: Be able to change gears. When Canopy hit $15 and change I should have thought that the price was way too high in this stage of the game.
If I sold, the worst case scenario would be that I would be up $170,000. How much higher could those stock prices go from there anyway? Would it not ever come back down? Hindsight is 20/20 though. If the prices did continue to go up then I would have said, “I knew it!”
I’ve learned it’s all about what happens after the fact that decides your perspective. When the stocks were on their 3 month run, all I thought was “I knew I should have bought more!”
I did sell some Canopy at $12.40 and also a couple side positions. That was part of my reason for not selling more on Nov 16th. I didn’t want to give away any more shares of my beloved Canopy. Don’t get emotionally attached to a stock, I know. I’m not sure if I’m emotionally attached or if I just believe in them a lot. It’s not the same.
If I was somewhat rich already I probably wouldn’t care too much about the wild swings but I’m just a poor boy and nobody loves me. My life is sort of riding on these stocks. Sounds sad, eh? We all got to have a dream.