Wednesday, March 02, 2011

You Cannot Time the Market ... how I missed out $5400

Today's Bombardier news once again remind me of the impossibilities of timing the market
and I'll always wonder the "WHAT IF".

I'll let the charts explain better, Murphy's Law "Anything that can go wrong, will go wrong".
The biggest issue I have is I still don't know why I sold it. If I needed the money, sure; but I didn't >__<

Bombardier BBD.B
  • # of Shares: 3000
  • Price sold: $4.85 on Jan 4, 2011 <- it hasn't moved much and I didn't gain much either.
  • Price today: $6.65 on March 2, 2011
  • Gains foregone = 3000 x ($6.65-$4.85) = $5400

Price chart BEFORE I sold, where it doesn't move much (6 months, +4%)



Price chart AFTER I sold, where it seems to only go UP (2 months, +32%)

Lessons Learned (and hopefully not repeated in future)
  • If you have to sell your winner stocks, sell in blocks (vs. I sold all of them in one go)
  • Don't sell, if you don't need the money for better use (e.g. pay down debts, emergency, better investments)
  • You win some, you lose some. I still own stocks over 100% gain, thank god!

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