Since I committed the grave mistake of buying Fannie Mae stock at the inflated price of $1.76, I have learned an important lesson:
- Do not buy a stock if you do not know why it is going up or down.
- Get out before the losses mount
So this morning when FNM dropped to around a buck — I have noticed that it seems to have support at that level — I bought 2,000 more shares of the company hoping to pare my losses. My current cost is about $1.27 and I will try to sell it when I can.