Bank of America Corp (BAC)’s Moves Today Teach a Valuable Lesson

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With any investment, there is a margin of risk that you must accept before buying in. But the more frequently you trade, the more downside you take on. The average household investor can bring in a 17% return, but as soon as he starts turning over his portfolio through frequent trading (over 9% turnover per month), the return drops to 10%.

Keep in mind…
Mr. Market may be efficient, but he is not always rational. Of course you should keep an eye on your investments and be aware of changes to a company’s operations or strategies. But be careful to not be a helicopter investor; if you hover, it may lead to more angst and anguish for you — unnecessarily.

The article Bank of America’s Moves Today Teach a Valuable Lesson originally appeared on Fool.com and is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned, but you can contact her here. The Motley Fool recommends American International Group (NYSE:AIG) and Wells Fargo. The Motley Fool owns shares of American International Group, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo and (NYSE:WFC) has the following options: Long Jan 2014 $25 Calls on American International Group.

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