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Good timing decision with Baidu (BIDU)
19 Feb 2021 (163 views)

On 16 Feb 2021, I held 400 shares of Baidu (BIDU) at an average cost of $245 USD. When the stock hit $320, I sold 200 shares at $320. (The stock price went up further to $326).

The price dropped sharply to $292 over the next two days, due to the general market sentiment. 

I bought back the 200 shares at $292. It has since recovered to $304.

If I took into account the 200 shares that I sold at $320 and bought them back at $292, I made a profit of $5,600 USD on this contra position.

I will wait for the stock to go up to $320 before I sell it again.

Why did I sell the stock at $320? I felt that it had reached its fair value. I wanted to move my fund to other stocks that may be undervalued.

In this instance, I made a good timing decision with Baidu (BIDU). However, I made bad timing decision on other stocks. So, this good experience does not reflect that I have any special skill in this area.

Tan Kin Lian



Good timing decision with Baidu (BIDU)
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On 16 Feb 2021, I held 400 shares of Baidu (BIDU) at an average cost of $245 USD. When the stock hit $320, I sold 200 shares at $320. (The stock price went up further to $326).

The price dropped sharply to $292 over the next two days, due to the general market sentiment. 

I bought back the 200 shares at $292. It has since recovered to $304.

If I took into account the 200 shares that I sold at $320 and bought them back at $292, I made a profit of $5,600 USD on this contra position.

I will wait for the stock to go up to $320 before I sell it again.

Why did I sell the stock at $320? I felt that it had reached its fair value. I wanted to move my fund to other stocks that may be undervalued.

In this instance, I made a good timing decision with Baidu (BIDU). However, I made bad timing decision on other stocks. So, this good experience does not reflect that I have any special skill in this area.

Tan Kin Lian