Sell or Hold Bank of America?

**mrose1120** · 03-18-2009, 01:24 PM

Originally posted by disneysteve View Post

What would you do?

I bought 500 shares of Bank of America a few weeks ago for $5.00/share. It proceeded to drop as low as $2.50. It then started to recover. I figured some profit is better than none so I sold 250 shares at $5.75. The stock closed today at $7.67. Would you hang on or sell the remaining 250 shares?

This is not retirement money. It is basically "play" money, a very small portion of my portfolio that I set aside for speculation. I certainly wouldn't be unhappy with a profit of $2.67/share but I'd hate to sell it all and watch the price keep climbing. Of course, I'd also hate to see the price plummet back down. I don't currently have a stop-loss order in. What price would you put on that sell order? Perhaps $7.00.

i purchased a small amount at 6.10 and i'm just gonna hold on long term since its not a ton of money, but in your situation, i might try the same (then again i'm a BIG stock newbie)

**mrose1120** · 03-18-2009, 01:25 PM

i'm also considering jumping on some AIG for a few hundred bucks

**tripods68** · 03-18-2009, 01:43 PM

Steve,

If you are contemplating the potential down side, I'd go cash in em' those chips. Like you said, "its play" money and its nice being ahead.

**disneysteve** · 03-18-2009, 03:02 PM

I decided to place a trailing stop order at $.50 below today's close. That will lock me in at no less than $7.17 if it starts going downhill again. I'd be happy with that.

**Broken Arrow** · 03-18-2009, 03:14 PM

Excellent. I was just going to suggest a trailing stop, and based on a price point that you're not willing to go past.... Set it and forget it.

**Bernz** · 03-18-2009, 07:43 PM

Trailing stop would be a good option considering you are like what you said using "play money". I'm keeping mine for at least a few months...hey anyone look at BCS? what do you all think.

**mrose1120** · 03-19-2009, 04:11 AM

Originally posted by Bernz View Post

Trailing stop would be a good option considering you are like what you said using "play money". I'm keeping mine for at least a few months...hey anyone look at BCS? what do you all think.

i'm keeping my BAC for a while too

I am gonna look into BCS Today....might be worth getting into

**rizzmo** · 03-19-2009, 06:27 AM

Steve with such market volitility normally, I would suggest using options to protect ones position. In this instance it may not make sense due to the number of shares you have. Still you may want to look into this.

**tripods68** · 03-19-2009, 06:33 AM

Same here...

I paid $3.43 BAC and I'm letting it ride for a little bit longer.

**buzz** · 03-19-2009, 07:52 AM

BAC is below $7.00 and fading fast...

**mrose1120** · 03-19-2009, 08:20 AM

7.00 right now....its up and down

**disneysteve** · 03-19-2009, 08:33 AM

Originally posted by buzz View Post

BAC is below $7.00 and fading fast...

Good thing I put in that order last night. It shot up to $8.57 after the opening and then started dropping. My order got triggered at $8.06.

Bought 500 shares at $5.00
Sold 250 shares at $5.75
Sold 250 shares at $8.06

Total invested: $2,500
Total profit: $952.50 (minus commission)

38% profit. Not bad at all in 24 days.

**disneysteve** · 03-19-2009, 08:41 AM

Now the question is if I want to buy in again and at what level. It has already dipped below $7 today. I thought it was worth buying at $5 the first time. Maybe if it gets down to $6 or less, I'd consider jumping in again.

**mrose1120** · 03-19-2009, 08:53 AM

Originally posted by disneysteve View Post

Now the question is if I want to buy in again and at what level. It has already dipped below $7 today. I thought it was worth buying at $5 the first time. Maybe if it gets down to $6 or less, I'd consider jumping in again.

i'm in at 6.20

Sell or Hold Bank of America?