PACT - Sold and Re-bought
Talk about good timing... I sold PACT at $8.30 this morning and bought it back at $8.00 at noon. The price is currently at 8.08 but it fluctuates a lot. I hope it goes up uP UP. Who else trades stocks here?
posted by Sean @ 6/01/2005 12:47:00 PM
3 Comments:
I don't know how effective it is to buy at $8.30 with such a small quantity.
$8.30 X 250 = $2,075
$8.00 X 250 = $2,000
Gross Profit = $75
-First BUY cost $10.99
-First SELL cost $10.99
-Second BUY cost $10.99
-Second SELL will cost $10.99
Total Fees = $43.96
Net Profit = $31.04
Don't forget on that $31.04 you now owe 30% or more tax because it was less than one year trade.
It would be easier to just stay idle and wait for PACT to go higher. Also, try looking into dividend stocks.
-Nev
I'm on Ameritrade iZone where each trade costs only $5. Also, the sell was on an earlier buy. Let me paint a more clear picture:
Initial buy $7.60 x 250 = $1,900
Sold today $8.30 x 250 = $2,075
Gross Profit = $175 - ($5 x 2)
Net Profit = $165
Buy today $8.00 x 250 = $2,000
Sell later $?.?? x 250 = $?,???
I have a sell order at 8.50, if it kicks in, it will be like this:
Sell $8.50 x 250 = $2,125
Gross Profit = $125
Net Profit = $115
You're correct, the quantity is really small. I wanted to pick up more shares of PACT but the price shot up before I could, so I'm playing with only a small quantity right now.
Generally, I'm a long term investor, but I also like to do some active trading. The last dividend stock I looked at was GM, but too many pointers told me it was a no go.
My current strategy/focus is on high growth stocks and later on, I'll look into dividend stocks when I have enough capital.
Well taxes depend on your income bracket, and one could trade in their IRA to have tax-free growth.
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