Bank of america dropped from 16.20 to 14.58 please advice?

I am new to stock investing and i bought 1000 shares of BAC when they were 16.20.Now they have fallen to 14.98 i am almost getting a heart attack please advice to sell or continue to hold? any good future predictors or credible analysts out there?I dont want to loose all my money when it goes all the way down to zero.Bank of america dropped from 16.20 to 14.58 please advice?
Investing in the stock market is NOT for the faint of heart. Stocks always go up and down in big leaps, sometimes daily. Watching the markets daily is bad for your heart.





That's just the way it is.





What you really need to do is ask yourself if BOA is going to survive long-term. If you're sure that they are, don't worry about it. You've purchased a blue chip, and you're likely a lot safer than if you had invested in some unknown company or a company in a volatile, competitive market.





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Analysis:





The trend for BOA over the last 10 years shows that they were hit pretty hard over the last 18 months as a result of the recession (as were all banks). They reached highs around $50 per share and bottomed out around $2 per share in March.





The short term trend (this year) seems positive. They've been recovering over the last 6 months. You bought in at a pretty high price for the year. The price started dropping mid-October, and you missed most of the crisis. The entire market dropped Friday as a result of press releases on the economy, and that may be part of the reason your price right now is not so great.





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Future performance:





Ask yourself what you see in BAC's future? Are they in danger of going under or are they buying up other banks? Do they have mediocre cash flow (or better)? Are they posting earnings or breaking even?





If you find no reason to panic, I wouldn't sell.





If you panic regardless of the news, I would suggest you sell as soon as you recover your purchase price and take up basket-weaving. You'll live longer.Bank of america dropped from 16.20 to 14.58 please advice?
If you want to lose 10% of your money then sell at $14.58


If you want to lose 20% of your money then sell at $12.96


If you want to lose 30% of your money...





If you are almost getting a heart attack when you lose just a few cents per share then maybe you should invest in T-Bonds.





BAC is currently (As of 12/31/2008) the 35th MOST PROFITABLE company in the United States of America with at least $4,000,000,000.00 USD in profits every year.





All you have to do is check their profits for Q1 2009, Q2 2009 and Q3 2009 and if they are more than last year then everything is fine and it is unlikely your money will go all the way down to zero.





Berkshire Hathaway and GE are also banks and they make more money than BAC and they are also more diversified.





A reduction in profits by itself is not enough to sell a company. I only make this sugestion because you seem to actually think BAC could lose money. They have been lending money since 1904





IF THEY SURVIVED THE GREAT DEPRESSION OF 1929, TWO WORLD WARS AND THE MARKET CRASH OF 1987 THEY CAN SURVIVE ANYTHING.





If you need somebody monitoring your investments 24/7 so you won't lose your shirts then maybe you should contact us.





Few companies in the world will make money this year but it seems BAC will be one of them.





If things get rough they can always open banks in Mexico (They charge credit cards with 50% of interest) or Brazil (They charge credit cards with 100% interest)
First off, BAC is a good company that I own shares in (full disclosure).





I think the stock will be a $30 one in 18 months. I think that $13 is a value that we will see before then, however. The economy hasn't recovered yet (regardless of what politicians say) and there is a lot to be done.





You could use some money to cost average down into BAC if it does reach a threshhold that you set (maybe $14, maybe $13, maybe $14.50) -- and that's up to you.





Either way, I think you made a smart buy if you are patient.
Start doing some research into options and leaps and how they are used to hedge against stock volatility. It will be better for your heart, the first guy forgot to tell you that LOL. You don't have to take up basketweaving if a little education can change you into someone who deals more calmly with stocks.





But yeah, one word- HEDGE!





Oh and btw if you turn into a frequent trader you should switch to a low fee broker if you are with one of the more expensive ones. Sogo charges only $3 a trade:





https://www.sogotrade.com/Setup/Default.鈥?/a>





Now, if you are new like me that sort of helps because it doesnt pain you so much when you do a LOT of trades. Other brokers charge you $10 or over per transaction so my point is that you can take advantage of the low fees and hedge yourself by diversifying your portfolio into more than one stock and also hedge yourself with puts and calls. Try doing some research on LEAPS and reading about options. That is a must if you want to be an investor.





Hit amazon and look for 5 star reviews on books. and get this book on options:





Option Volatility %26amp; Pricing: Advanced Trading Strategies and Techniques by Sheldon Natenberg.





And one last word of warning, never never buy and sell the same stock in the same day more than three times a week. It's the PDT rule.
I would sell your PUTS of BAC when they go lower. For smart people use stop losses, or PUT their own company.





Why would you buy on a market top? We are in an economic collapse right now and the house of cards is falling. Gerald Celente has told us truth, which is what CNBC will not give you.





If you did not PUT BAC yet, that will protect you from further big loses, and selling now is not a bad idea.





Another play is to buy some FAZ to protect your BAC, because when the financial system falls, FAZ will double, triple or even better as it is highly leveraged.
Why did you buy it in the first place? To hold long term? To try to make a quick trade? You should always have your reasons thought out in advance before buying any stock. Volatility and stock markets go hand-in-hand; that will never change.
If you plan to hold this stock and cant handle the down turns, I suggest you go see a doctor.