Stupid decision with CC but recover

One day I was browsing through calendar and I noticed that CC (Circuit City) will have earning annoucement in the following week. Although, they have a weak financial figure and many analysts estimate they will lose about 18 cents per share, I was thinking the stock price will go up if only they report a loss but lower than 18 cents. So I bought 70 shares at $10.15 on 9/6 and they were about in 52-weeks low price so I think it's impossible it will go lower. Well BIG MISTAKE!!! they reported 38 cents loss per share and the stock price plunge about 15% or $2 lower than the previous day's closing price. I read in the blog that many people get out and take profit before the earning announcement and short it all the way down. I feel so stupid that I keep my stock and thinking that it will beat the earning loss estimate. What I was thinking!? A lesson learned here is to never expect a miracle to come in a financially troubled company.

The stock price is going deeper everyday and I have the buyer remorse and wish that I could go back in time and sell the stock before the earning announcement. I keep thinking in my head whether I should sell the shares and eat up the loss or wait until it goes back up again. Few weeks passed by and the stock price doesn't seem to recover too well and keep making its 52-weeks low, I keep thinking myself that I have to overcome this common trader's mind. So, a day after the stock hits a new 52-weeks low at $7.70, I bought more CC stocks (130 shares) at $7.98 on 10/2. I see that since this stock is currently trading even lower than its company's value, a spark good news will drive the stock up quick.

I'm lucky I was right, the next two days, the stock gain more than 5%, I can sell at $8.75 and even up my overall position with CC but I think I will hold it for one more day, then the next day the stock has more than 5% again. I finally sell all 150 shares $9.05 at 10/5 and get an overall gain of 1.86% after commission. Although, the stock closed at $9.13 on that day but I don't regret my decision. If I didn't take the jump when the it was trading at $7-ish, I might have lost about 15% in these shares instead of gaining some.

Lesson learned: always be careful burning cash and forecasting loss since most of the time it would be worse than its estimated forecast.

Lesson learned 2: When selling shares, wait until mid-day to let other traders jumps in and hike the price, I sell my CC at $9.05 when it peaked at $9.41 around 2 PM. I should follow the tick more closely and sell when it started to drop or use trailing stop order.