A while ago I took a position in some Natural Gas drillers. Specifically Grey Wolf and Nabors. I never really planned on owning them long term. I just took positions because I thought I wanted a few different energy plays and so I branched out into an area I wasn't totally comfortable with (mistake #1).
I actually did OK on these at first, and saw some good gains. As I was in this for a trade, I should have gotten out, but I didn't. Soon after, the price of Natural gas spiked down and never recovered. Since I didn't have a lot of money invested in either position, I didn't really worry about it. I figured that it was OK and that it would eventually come back. So I held. Held like a chump.
I should have just gotten out of the position when it reversed. I made a classic mistake that so many of us make; I let a trade become an investment. I held on to the position WAY too long in the hopes that it would eventually come back. Hope, it's the one case where it really isn't a very good thing to had. I kept telling myself that energy was a great story and it would continue to be so (it is, but this wasn't the way I should have or wanted to play it). I kept coming up with excuses to keep the stock. But that was unnecessary. It was a trade. Trades don't have reasons, only investments do.
I finally got out of the positions this week. I did it to take the capital loss and offset some capital gains I have but it should have never come to this.