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Facebook IPO

I haven't posted much about the stock market lately because I haven't been involved in it for a while. But I, like many many  other people, bought some Facebook stock. I'm happy to say I was smart enough not to buy it on the opening day. I felt sure the price would be pumped up before the markets even opened. I'm not certain if that's what happened, but it sure did plummet later in the day.

I'd like to tell  you I bought it today. But that's not the case either. I bought it Monday. I didn't make a blog entry about it at the time because I was blogging about more important things like kissing pretty girls. It was down 10% from it's opening, so I thought it was bottoming out. Nope. It continued to fall for the next couple of days.

I wish buying too soon was the dumbest aspect of my trade. It's not. I wasn't paying close enough attention and I bought it in my IRA account instead of my brokerage account as I had intended. I am willing to do some modest speculation, but not in my IRA. Speculation can involve selling for a loss, and that should never be done in an IRA.

So I was doubly stupid (or at least stupid and a half). It might not be a complete disaster though. It closed up 3% today and I have almost broken even. One friend to whom I confessed my stupidity suggested it wasn't really a speculative trade. He has a small point...facebook is not exactly a penny stock, and it's not likely to go out of business anytime soon. It might still do as well as google.

This could still turn out to be a bad decision in the long run, but I don't think it will cause me to have to live off of dogfood when I'm elderly. Maybe I will have to take up the dogfood diet, but this trade probably won't be the only reason.