I am going to invest all my money in BAC

Hello @Charrima. Glad to see you still around asking questions. I see you didn't take my advice (and many others) yesterday. Considering it looks like you're not open to doing the responsible/better decision, I'll at least try to give you a little insight on your current idea.

I remember you saying you started with $10,000 and are currently down $1,100 or so. That leaves you with $8,900 that you say you want to go "all-in" with in BAC (click here for the BAC thread where people have been posting ideas on that stock, I linked the last page for the most current posts - http://stockaholics.net/threads/bac-bank-of-america.30/page-10). See the picture below for any references to charts.

As you can see, it's been running and running, and that basically started when the FED made every indication that interest rates would be going up. In other words, many people who decided to invest have stayed in, or opened positions already. This is why the stock has been going up extremely consistently and quick since early November. This is what many people mean when they say that the news is "priced in". In other words, everyone knew that good news was likely, so they ALREADY put their money in. When the good news actually happens, there's not much room to go a lot higher, a lot quicker. The problem is that the people who wanted to catch the run up already got in so that they would catch the whole run up. Once the fed raises rates, the stock will go up a few % if I had to guess. So if you look at your $8,900 and the stock somehow managed to go up 10%, you still wouldn't even make $1000, you'd only make $890 (less after trading commissions). Another problem is the likelihood of 10% in one day is extremely low, it would be a slower grind up then that.

The other option is the FED decides not to raise rates. Just because it looks likely, does not mean it will happen. Look at BREXIT a few months ago. EVERY indication was that they would not leave, but once they did, the market tanked. The same thing could happen with BAC and other financials. The FED could decide not to raise rates even though it looks like they will. If they don't raise rates, as you already know, the price will drop. MANY people will take the profit they've already been gaining the last few months. Many people will try shorting the stock down even further for a few days. The stock could go down 10% in one day.

This is a perfect example of risk/reward. If you had been in much earlier, it might have been worth a shot (still not with your whole portfolio, but you seem to be stuck on the idea of going all-in). Just my opinion, but NO, you will NOT make $1K overnight with a position of $8,900. You could however lose $1K overnight if the fed does not raise rates. You may make $200-$300 possibly, but that's about it in one day in my opinion.

Good luck with whatever you choose. @Tiptopptrader is the resident expert/bull on BAC on this forum if my memory serves, so maybe he can answer the question better than I can.

 

AKAO is a biotechnology company, therefore extremely volatile and makes swings of that size with ease. BAC has a tremendous market cap and has nowhere near the volatility that AKAO or other bios have. It would take something huge to move it 12% in one day, and a priced in raise of interest won't be enough to do that.

Hopefully you make a little money, but it won't be $1K like you want. You are right, the market is weird and I don't know anything for certain or I'd be filthy rich. Nobody does. I can tell you for certain though that at this rate, you have a very stressful and most likely financially painful road ahead if you stick with this all-in, try to get rich overnight strategy. I hope your original $10K isn't your life savings and isn't that important to you so that the lessonsame you are learning right now end up not being that expensive.

Good luck on your trade though. Hope it works out.