Should Have Held On To Bank of America At $5

Dec 28, 2012
J. Webster
Comments Off on Should Have Held On To Bank of America At $5

I’m guessing this is the case for a lot of traders: They have that one trade that they wish they wouldn’t have traded and instead held as more of a long term investment. Long term meaning, just under a year. So yeah, that’s not too long.

In December of 2011 Bank of America was trading for around $5 a share. This was when there were worries the big bank might come close to failing once again due to all of its mortgage problems, both lawsuits and continued foreclosure issues. And around this time Warren Buffett stepped in with $5 billion and got another sweet deal for attaching his name to the Bank of America “recovery”. Fast forward to today and Bank of America sits close to $12 a share, more than a double if you stepped in like Buffett when everyone was scared.

Despite a traders desire to have a short memory and not think about those woulda, coulda, shoulda trades, selling Bank of America too soon is the one regret Vcutrader holds this year:

vcu_trader

Trading stocks is a very difficult endeavor to say the least. Especially when you consider all of your losing and winning stock together – you might have some big winners but then there are those losers that wipe out those so called winners. And there is the time spent managing your trades – all the blood, sweat and tears. Many times its hardest to just let your winners run and forget about them, as was the case with Bank of America at $5 a share. It’s almost better to just hold you nose and buy the stock and take a vacation. If only it were so easy and we had a spare $5 billion like Warren Buffett.

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