Investing Mistakes
  • Investing mistakes - I know I've made them and even made one this morning. And they have all been fear/emotionally based. Here's a few of mine and I'd love to hear yours so that we can learn from each other.

    * Bought a penny stock KDKN a few years ago for 11K and got out just under 9K before the stock went near zero...
    * Sold AGNC this morning (for a loss) after seeing the international markets take a beating last night and really seeing rates go up fast. Hence it (AGNC) goes up 4% today...

    I feel bad since my value proposition for AGNC was that it was a discount buy and the dividend would be close to maintained. Now I feel like a dummy who should just keep quiet since I didn't even keep my own advice.

    What about you guys/gals, do you ever feel like dummies when you make mistakes investing?
  • I can relate on AGNC Mishaps... I bought it in September for just under its all time high($36.57 a share for me high was 36.63 maybe?) and still have it.
  • @Tcap Thankfully, it is soaring like an eagle today - and will likely continue to do so if dividend announcement is good.
  • I would suggest investors leg in, and leg out over 3 tranches. For example, you want to buy $100,000 of Apple Buy three tranches of $33,000 each over several days, weeks, or even months because you never know. Same with selling.
  • @FinancialSamurai - Makes sense Sam. Every lesson has something valuable to go along with it. Sometimes experience is the best teacher and I've just paid more investing tuition :)
  • I bought a biotech NEOL at like $8/share, watched it go to $2! Never bet on clinical trials again...
  • @JeremyNoelJohnson
    I don't think you should feel TOO bad about AGNC, it looks like it's cooling off today and we have yet to see the upside sustained, but like you said, valuable "investing tuition"!

    Good advice I am sure we all appreciate that one! I've read about legging in but not about when getting out, but makes total sense! That's pretty much a way to dollar cost average, right?
  • @JeremyNoelJohnson Still feel bad about selling AGNC J? Getting ugly out there! I'm going to start deploying some cash now.
  • @FinancialSamurai Are you buying AGNC, or just deploying in general today?
  • @FinancialSamurai - it certainly looks like a better decision now that it has taken such a beating :) I wonder about the future of it - is the price now a true premium or will it dip more. The management at AGNC has stated they have hedged for higher interest rates. One of those situations I don't want to kick myself for not getting in at a premium, but not getting in at the wrong time either.
  • @Tcap I was 35% in equities, 65% in cash as of yesterday. Today, I deployed a third of my cash into the markets, but no REITs yet. I'm afraid of some crazy move where the 10-year yield has a pile-on sell-off and the yield spikes to 2.75% or something. Then it is really game over for highly interest rate sensitive stocks, which I would then go all in and pray.

    Fun times!

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