Thursday, January 21, 2016

Explain to me If I've made a mistake by purchasing, selling, and repurchasing.

Ok, everyone, I'm totally new to buying stock. The extent of my experience is that this one time I bought into a mutual fund, so I'm not sure if I've made a mistake now that I'm playing around on buying and selling stocks myself. Here's what I did all within 4 weeks:

  • I bought stock in a group of companies for $500.

  • I waited and sold the stock when it was up 22%.

  • The stock then dropped 14% in value from the 22% that it had risen when I sold it

  • at which point I used my original investment plus the money I made to buy it again.

  • Now from that 14% decrease that I repurchased it at, it's up 9%.

To me, it seems like I did something smart, but I'm not the most intelligent person out there and I wanted to check and see if I'm missing something. Each trade cost me $5, so $15 total. Was I better off just holding on to the stock? Have I done something illegal? At no point was I ever taking a loss.



Submitted January 21, 2016 at 03:55PM by cabsence http://ift.tt/1S80Q9a

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