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4
The Fear and Greed Trilogy, Part II: Greed |
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At the close of the market on Monday, April 12, 1999, the Dow finished up 166 points for the day, reaching a record high of 10,339. On the same day, Pfizer Pharmaceutical hit 150. |
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I had picked up 200 shares in mid-January and added another 200 in early February. In less than three months, taking a ride on the Viagra express, I had made a decent return of over 25 percent. While it wasn't exactly the kind of astounding return some of the Internet stocks were providing, the actual dollar amount earned was plump, and I was feeling pretty good about it. Pfizer was looking as stable as the Rock of Gibraltar. |
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When I put my ear to the ground, I should have picked up the distant vibration of galloping hoofs headed toward me. I should have realized the run-up was a little too frothy not to be more cautious. |
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Now, when it hit 150, I remember thinking, ''It's come up pretty fast. You've got a nice return over a fairly short period. The last time a stock profit reached this point, you sold and were satisfied. Earnings are coming up. Why not take your profit now? You can always buy it back later." |
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But I didn't act on what I was thinking. I didn't put in a stop-limit order to sell, locking in my profit. Nor did I set a mental stop. Had I followed my thinking, I would have sold at the exact top. But no, I was going to squeeze just a little more juice out of it. Greed reared its head, opened its ugly mouth, exposed its sharp teeth, and bit me hard. |
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