Wow, today was a very good day for the market. All the broad indices were up about 3% and my portfolio was up a similar amount while I was still about 65% invested. I even sold one holding to realize a tidy 9%.
But I also felt my first real pain. Corus Entertainment had a bad earnings report and I saw a stock that I bought for $13 fall from $12 to $10.25 in minutes! Although they had a bad report, there was no dividend cut or any other news that had long term ramifications, so I didn't even consider bailing out. I briefly considered doubling up at the bottom, but I just wasn't comfortable throwing more money in either. Too bad, because Corus was up to $12 again by the end of the day. I'm still holding a loss, but it's not insurmountable, so I'm holding on and collecting monthly dividends in the short term.
This was also a really good lesson in diversification. When the price was plummeting, I realized that even if the Corus price went to zero, my overall trading portfolio would still be ahead for the last two months. This would not have been the case if I doubled up and the price went to zero.
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