Former NYSE Trader Reveals His Worst Trading Mistake

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Got some trading mistakes in your back pocket?

Don't worry, everyone has some. 

Stephen "Sarge" Guilfoyle, a Real Money contributor, was a trader on the floor of the NYSE for over 30 years.

When asked about his worst investing mistake, here's what Guilfoyle had to say. 

CMGi, a company in the dot com bubble, was trading over $151 when Guilfoyle bought shares. Unfortunately, Guilfoyle was stuck watching the stock until it was below $4. But why'd he wait so long to sell out of his position?

"Well, see the problem was, I worked for an investment bank at that time and we had a holding period and when it was obvious that I bought it at the worst time when it was obvious that the internet dot com bubble was crashing. It was only maybe three or four weeks into my holding period and I, cause we had like a 60-day holding period back then, and I called the brokers that ran our employee trading. I said, listen, can you let me out of this trade? Obviously, I have an error. I've lost 50% already. And they said, 'No.' So I had to hold it for another 30 days and by that time the stock was almost worthless," said Guilfoyle. 

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