Anatomy Of A Trade: Execution Over Strategy


There are some things you can’t control.

We are taking stock of the last several months to see what has gone right and what has gone wrong.  The wrong is easy.  We are still working through the market drops due to Fed tapering announcements in mid-August and Syria this week.  We have a couple of outstanding trades dealing with those broader market forces.

However, we looked at one past trade in particular.  We purchased Zagg Inc. (ZAGG) on July 18 at $4.7572 and it kept going south.  It did manage to close in positive territory after a rocky ride, and we tempered our enthusiasm with caution.  We put in a protective stop a bit under the closing price of $4.86.  We were hoping but not confident.

Well, the stock sunk fast the following day.  So fast that it blew past our stop price.  By the time our stop order executed, it traded at $4.76, giving us a whopping 0.06% gain.  Since ZAGG closed today at $4.46, we’ll take it (as if we have a choice).  We would have preferred better execution, but we managed to avoid the worst of the falling knife.

Despite a challenging August, the Underdisclosed fund is still up over 85% of the funds invested in February 2013 and over 55% when combined with the funds invested at the beginning of August.

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