Message Font: Serif | Sans-Serif
No. of Recommendations: 3
>Example: I buy 1000 shares of JDSU at $130, the market drops drastically, I get frightened, and sell at $80, at a loss of $50,000.>

Just a question about your JDSU purchase. Obviously, one does a lot of research BEFORE making a 130k stock purchase. In all of your DD, what changed about JDSU's long term prospects when the stock fell to 80? The fall in price was not related to JDSU alone. Most of the sector was way down at the same time.

I notice JDSU's Friday closing price is close to your original buy price. The person who bought your panic induced sale of shares is up over 50% since then. I do not write this to put you on the spot. I think everyone can benefit from having a clear understanding of why they are buying a stock at its current price. If you are buying in a very volatile sector, you should know the risks involved. If you are not prepared to hold a tech stock through a 40% drop in share price, you should really think long and hard about buying in in the first place. Buying these volatile stocks near an all time high after a sharp runup is extreemly risky. What happened to you has happened to many others. I hope in the future you ask yourself these serious questions before making such a large purchase.


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.