I sold Xiaomi
I sold my FOMO stock Xiaomi last week. And I am not happy about it.
After the soon-to-be-gone President Trump decided to put Xiaomi on his blacklist we all saw Xiaomi dropping heavily. By the time the news got mainstream media coverage, I decided to protect my portfolio and added a stop-loss order for my Xiaomi stocks.
Shortly after all my shares have been sold as Xioami was dropping further.
The outcome was, that I made a tiny little profit by selling and that I protected my initial spending. This is of course a good thing but still - I am not happy.
For sure - even though I sold at this terrible moment as part of a stop-loss order, I made more money than I would have by leaving the money sitting in my bank account. The sad part is, that Xiaomi finally went off again and had great momentum in the last weeks that has been destroyed now. Hopefully just shortly.
But why did I add a stop-loss at all? That is not my normal behavior in my buy and hold strategy.
I still believe in Xiaomi being a good investment and that this company is and remains successful. However - even a great company can have a hard time when being drawn on a blacklist by the POTUS.
If a single analyst writes something bad, I can deal with it, but being put on a blacklist by a man with such influence I really can´t tell what it means.
I can´t even say in which direction this is going but I hope this list will be burned after January 20th, 2021.
I see myself more as an investor than a trader and I think I could have held the stock further but honestly: I rather protected what I have and buy later point in time when I have a better understanding of what this action meant.
I can only hope that the situation mitigates fast and that Xiaomi can take off again. Even if I need to spend a bit more now to join the show again. Meanwhile, I distribute my investment onto my other investments with the goal to let it grow.
But honestly: I think we are not seeing the bottom line yet. Even though Xiaomi reacted and said that they do not have a connection to the Chinese military.
Also, there is no certainty that US citizens can continue to buy or even hold the stock long-term.
Until this is not resolved or at least clear I am waiting at the sideline.
Depending on what will happen in the next few days, I might even get a chance to buy in at a lower price. Even lower than my initial spending -as you know- I came late to the party.