Initially my aim of buying this counter was hoping for a quick gain based on the technical analysis that I did. I first bought this counter at $0.165, since it has been stabilizing at this price for quite some time. However, it seems like things did not go the way I intended. Soon after, under the selling pressure from the pessimistic market sentiments due to the problems from the Eurozone, the share price of Healthway just dropped uncontrollably.
Things worsen with the release of the first quarter earnings report by Healthway. Their revenue and profit took a dip and that worries me a great deal. Emotions came into play and discipline ceased. When the share price dropped to $0.15 on 17th May, I sold part of my holdings to reduce my exposure of this counter, but at the same time, not erasing the entire opportunity to stay vested in this growing healthcare service provider.
Soon, things took a turn for the better. Eurozone concerns eased and news that big buyers are snapping up shares of Healthway boosted and share price and within a month's time, the share price has shot up from a low of $0.14 to $0.21.
As $0.20 was my initial target price of this counter, and from the technical analysis which all pointed to a sell cue, I decided to stick to my initial plan and sell Healthway at $0.205. Due to fear, I sold part of my holdings previously and this decreased my supposed profit from 20% to a mere 7%. This is a lesson learnt for me and made me believe even more that discipline pays. Profit taking at my target price is better than any unforeseeable drop in share price resulting in possible paper loss.
My thoughts at that time: I was filled with greed when the share price shot up to $0.21, thinking that the price may even rise further to boost my profits, but I decided to be firm and discipline and stick to my selling price.
Lessons learnt: Emotions really confuse me. Fear and greed are no doubt an investor's greatest enemy. Stick to the target and be contented.
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