Introduction
It is such an exciting to see the gains of $500 dollars in less than one week after my purchase 500 share GE stocks. But it was also surprising to see the price went down and gains are around $100 dollars instead. I like to write down psychology part of investment, short term, medium cap, and distressed business with too much debt, pandemic, and lessons I learn.
Case study
I have a Chinese friend who purchased $10,000 US dollar stock GE, and then sold in next day morning 7.4/ share, and made profit $400 dollars. She asked me if I like to sell with her together. I told her that I am a long term investor, and I shared with her my business plan.
After GE went down from 7.4 to 6.6, I think that I should treat this market gain over 20% in less than one week as abnormal, and take profit of $500, and then purchase back when price is low as $5.5 to $6.5.
May 30, 2020
May 27, 2020
Here is the article to explain why GE had 7% drop first hour on May 26, 2020.
Shares of industrial giant General Electric (NYSE:GE) tumbled 5% in early trading Friday, and remain down 3.6% as of 10:40 a.m. EDT. What precisely is causing GE stock to fall, however, is a matter of opinion.
free cash flow will be a lot worse than the $2.5 billion Wall Street has been estimating so far -- as much as $3.5 billion to $4.5 billion -- and that GE will end the year burning cash as well.
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