[umfan92]

Well after much research, I decided I was going to buy Sprint stock (S). The reason was because it was affordable enough to buy 100 shares so that I might be able to sell covered calls on it. Nothing serious, just to get started and start experiencing different things. Well, I'm sure you all are already shaking your heads at what you have just read and I know. It was stupid. I'm never going to buy a stock based on it's price again.

But now that I have learned my lesson, I'm not out of the clear yet. I still own 100 shares of Sprint that I need to decide what to do with. They seem to be dropping a lot. Someone help me figure out what the experienced trader would to do figure out where it's heading. I don't really know how to do all the research yet. What would you look at? And what should I do with my shares?? I bought at 5.48 and it's at 5.22 more or less now. HELP!!

Thank you.

[Tams]

50 MA is still going up
200 MA is still going up

what's to worry?

[Do Or Die]

Should bounce a little till 5.47... get rid of them at that price. Sell them off... get out of the pit.

Get your money out of the stock and in your pocket... you will get better opportunities.

[SIUYA]

so what was the mistake?
- buying shares after doing a lot of research
- buying shares after doing a lot of research and then buying the stock because you could afford to do a strategy in it, and hence the research was a pointless waste of time
- doing a buy write strategy
- not having a stop loss
- or remaining a stock holder

if the mistake is having a loss - then you will make lots of them with a trading career

[Tradewinds]

Sprint is a NYSE stock:

NYSE, New York Stock Exchange > Listings > Listings Directory > NYSE

Sprint is part of the communications sector of stocks. Many stocks trade similarly to the market they are in. If you chart the SPY or the /ES, you'll see that the chart of those and the chart of Sprint is similar. The market reacts to general news, and economic trends. When there is a lack of news specific to Sprint, it may follow the market it is in, at least to some degree.

So if the NYSE 500 is trending down in general, Sprint might be trending down. Look at a one month, daily chart of the SPY and a one month daily chart of Sprint.

[jpennybags]

I would agree with "do or die". I'd be pleased to be out at $5.40... take it if you can get it. Regardless, you need to be moving on.

[umfan92]

Thanks everyone. Well Sprint went up a little bit today which is better than going down any further. I think I'll wait a while and see what happens. (although I know one of the worst mistakes is trying to wait until it goes back up and end up losing 50%) I guess it wasn't all bad. I learned a lot and now I know that I have to keep researching and learning more.

[Tradewinds]

The research that you have done is almost immaterial if the recent drop in price is a concern to you. If you are making a long term value investment, and are going to hold the stock for years, then price moves like these are meaningless.

If you don't plan on holding the stock for years as a long term value investor, then it seems to make sense to base your decisions on what moves the price short term. It's difficult to predict how news will move the price short term, so many people just avoid being in the market during news releases, and wait to see what is going to happen.

You need to stay informed about what the general economic outlook is. If you are pursuing a "Long Only" strategy in a retirement account, and the economic news continues to be bad, it may be difficult to trade.