Buy or Hold?

txrandom

Diamond Member
Aug 15, 2004
3,773
0
71
I bought Fannie Mae at $.33 and it's up to about $1.30 with after hours trading. I only bought 900 shares, but a $900 profit or about 300% profit is still nice for a college student like me. I'm going to lie, I got extremely lucky. Do you think I should wait around a few more days?

I think it's pretty unlikely that new information in the mortgage crisis will cause Fannie Mae to take any sudden downturns, but then again I'm a stock noob.
 

EightySix Four

Diamond Member
Jul 17, 2004
5,122
52
91
Originally posted by: txrandom
I bought Fannie Mae at $.33 and it's up to about $1.30 with after hours trading. I only bought 900 shares, but a $900 profit or about 300% profit is still nice for a college student like me. I'm going to lie, I got extremely lucky. Do you think I should wait around a few more days?

I think it's pretty unlikely that new information in the mortgage crisis will cause Fannie Mae to take any sudden downturns, but then again I'm a stock noob.

Don't get greedy, sell. Enjoy the profit gained. The market is so volatile lately take what you can get then dump it.

At least that's the way I look at it.
 

goog40

Diamond Member
Mar 16, 2000
4,198
1
0
Ask yourself, if you hadn't already bought the shares, would you buy it now at the $1.30 price point. If so, then you can hold. If you wouldn't buy now, then you should sell.
 

Crusty

Lifer
Sep 30, 2001
12,684
2
81
Originally posted by: mizzou
isn't there a penalty for short selling?

There is no inherent penalty for short selling unless you don't follow the rules and do something illegal, like naked short selling.
 

NoShangriLa

Golden Member
Sep 3, 2006
1,652
0
0
Originally posted by: crazySOB297
Originally posted by: txrandom
I bought Fannie Mae at $.33 and it's up to about $1.30 with after hours trading. I only bought 900 shares, but a $900 profit or about 300% profit is still nice for a college student like me. I'm going to lie, I got extremely lucky. Do you think I should wait around a few more days?

I think it's pretty unlikely that new information in the mortgage crisis will cause Fannie Mae to take any sudden downturns, but then again I'm a stock noob.

Don't get greedy, sell. Enjoy the profit gained. The market is so volatile lately take what you can get then dump it.

At least that's the way I look at it.
Exactly, greed kills.

Walk a way with the profit now, and let the net poor sap take the gamble.

 

mizzou

Diamond Member
Jan 2, 2008
9,734
54
91
ah, i must be thinking about tax returns.
You will have to report the profit and get taxed on it
 

drnickriviera

Platinum Member
Jan 30, 2001
2,433
245
116
other alternative is to sell off only enough to cover your initial investment.

I always kick myself for selling apple too fast. Bought 100 shares at $70. Shot up to $78 the same day and sold out. couple weeks later 2-1 split. then it shot up to $180 over the next year or so. I left about $20k-$30k profit out there. But I always say 'at least I made $800'
 

DomS

Banned
Jul 15, 2008
1,678
0
0
OP: Sell enough to cover your original purchase. Let the rest ride. I was in FRE when it was sub dollar, rode it up to 2.95. It got back down to about .65 and I'm back in it now, it's around 1.30. I've been trying to figure out a price target. Personally I think I'm holding a majority of my position until it hits 5 or 7.
 

txrandom

Diamond Member
Aug 15, 2004
3,773
0
71
I sold it at 1.07. A few hours later it was down in the .80s. I got lucky again! $700 in profit is good enough for me.