No one Understand Bank of America’s Book and I Hold Shorted Position For The second Day
Bank of America keep getting upgrades from analyst and its stock price keep going up. My lost keep increasing. I really don’t know what it is going to be like next Monday. Yesterday I regretted that didn’t short more at $13.20. Today I felt I was lucky that I didn’t do that. When Goldman Sachs and Morgan Stanley upgraded Bank of America their target price was too far out of line and nobody really believe into it. But it doesn’t matter what BOFA’s fair value is if the same view is repeated multiple times by different people then we find it is easy to believe into.
In other words this really tells us no body really understand how much Bank of America worth and no body really understand its book. We just know that the majority of the people looking at Bank of America and believe its price will go up and up. My lost increase about $1,300 more and my account balance is way below its initial value of $30,000. I believe a big pull back will happen sometime next week I just don’t know at at what price the pull back will happen. I feel the chance it going back to $12.50 is pretty small now.
Again it is the fault of taking short position in the first place.
Account Balance Change: -$1310.00
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Nobody cares about BAC books or what’s it worth, it’s just pure and insane speculation. Be careful though about your short position, I think shorts are panicking and rushing to get out, and that’s driving the price up. Remember story about Volkswagen last year? It’s stock rose from 200 to 1000 in two days in panick buying… That’s the price you pay for shorting the stock - the risk of loses is unlimited. It may sound stupid, but I’d say in order to hedge yourself just buy the same number of BAC shares immediatelly and see where it goes from here.
Buddy, you still have absolutely no idea what you’re doing. I honestly cannot believe you have an mba, considering you have no clue about how to invest. How could you have lost ANY money since the March lows?
Hey Markus Jackson,
Glad to see you’re blogging about your horrendous trading. It must be cathartic for you.