Stock lessons: sold the goose too early
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This is typically what happens, shortly after I sold a stock, it becomes golden goose. This can be best exampified by the US Bank stock (NYSE: USB). I bought some yesterday afternoon shortly before close. But I kind got a buyer remorse, thought my $16.50 price is a bit high. More importantly, I don’t know how financial stocks will go up and down as the earnings started roll out (WFC, GS), and the stock offering of Goldman. I am also unsettled by the charts: by looking at USB/WFC/JPM etc. at stockcharts.com, it appears to me the bank stocks are topping (higher price, lower volume). So I became nervous and sold it this morning, at $16.78. Shortly after that, USB took off, it closed at $17.89. In other words, I missed the potential gain, again 🙁
(Video from Yahoo Tech-ticker)
Made quite a few trades lately. As I read from WSJ, and watched from Yahoo Tech-ticker, this is a trader’s market. Financial stocks (banks, insurers, even asset managers such as T. Rowe Price) went up and down, as the news on Mark to market, uptick rule, Public Private Investment Partnership and most recently thw Q1 earning came out.
But when I examine the transaction fee, profit and loss. I am still at a loss this year. The biggest loss is from BRK.B 🙁
Other recent instances I sold a stock too early: STP and PCX. I sold STP when it started to run, at $11.76, it now trades at $14.64. As to PCX, I became nervous again and locked in small profit at $3.93 (at the days’ low), it now trades at $4.49 (after its big brother BTU big drop today).
1) Patience, more patience, esp. in this volatile market. There are many opprortunites, as long as we are patient and open minded;
2) Talking about open mind. I was debating between myself about selling USB stocks since last night. I did remove the limit sell order early morning, but I put it back on shortly, and obviously sold it way too early (changed from $17.98 to $16.78). Need to adjust as the situation changes.
3) On a positive note, I did not sell it in low $16 at the beginning of trading hour, which is exactly how I did with WFC couple month ago.