I hate when I miss opportunities.
Last night after checking my email I did some of my homework on the two stocks I own Regions Financial (RF) and Toyota (TM). Both stocks have been knocked down due to the housing market troubles, but I'm in it for the long term esp. with Regions since it pays a good dividend.
Anyway I saw two articles on Regions Financial that both had just been published after the stock market closed that day. I new in my gut that Regions was headed for a big drop the next day. Being by nature lazy I decided not to do anything and went on to play video games.
The next day it dropped about 3 dollars per share.
What I should have done is sold Regions after reading the news, so I could have bought it back the next afternoon or following trading day after it had taken the major hit. Even if it had continued to drop I would have saved myself 3 dollars a share (minus the trading costs). I could have sold the shares and invested in something that I knew wasn't plunging the next day. Either way I should have sold.
Lesson to Self: Don't be afraid to cut your losses and run. As Jim Cramer says "worry about the downside of a stock the upside will take care of itself"
2 comments:
Been there done that...
Hopefully it was a really good game though.
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