RIMM is not acting like a stock that just had an excellent earnings report..... something is wrong..... EJECT EJECT EJECT !! When a stock is not acting the way stocks normally act under the same circumstances, it means something else is happening that we don't know about.
This is relevant to what Jesse Livermore said that is on my Famous Quotes page: "If a stock doesn't act right don't touch it; because, being unable to tell precisely what is wrong, you cannot tell which way it is going. No diagnosis, no prognosis. No prognosis, no profit."
Well, I bought it and saw that it was not acting right, so it's time to get out for a loss of $1.75/share in two trading days. On psychology: I feel great right now. It's good to take a loss in the stock market because it's part of the game. The question is, did I get out when I saw RIMM wasn't acting right? Or did I just watch and hope as the stock plummets? I feel great not because I lost money but because I didn't lose a lot more money and I took action when it was appropriate to the situation.
There is a saying on Wall Street: If you don't know how to take a small loss, sooner or later you will take a big loss. I just took a small loss and that is ok. It's time to short RIMM or look for another stock to buy.
