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Thursday, June 02, 2005

PACT Swing Traded

My limit for PACT kicked in today at $8.50. I also had a chance to pick up more shares at $7.80, and sold it for $8.30. I was actually surprised all my BUY and SELL limits got taken out so soon. Oh wells, at least I profited. Broker: AmeriTrade iZone (previously FreeTrade) account. 5/23/05 BUY PACT 7.60 250 1,905.00 6/1/05 SELL PACT 8.30 250 2,075.00 6/1/05 BUY PACT 8.00 250 2,000.00 6/2/05 BUY PACT 7.80 250 1,950.00 6/2/05 SELL PACT 8.30 250 2,075.00 6/2/05 SELL PACT 8.50 250 2,125.00 Commissions = 6 transactions x $5/transaction = $30 Gross Profit = $420 Net Profit = $390 Here's my loss from yesterday: Broker: Scottrade 5/11/05 BUY AA 28.30 175 4952.5 6/1/05 SELL AA 27.50 175 4812.5 Commissions = 2 transactions x $7/transaction = $14 Net Loss = $126 I've decided to let go of AA on my long term list. I'm planning to add PACT to my long term list. If there is a huge drop, I'll load up on the shares. I'll also use partial holdings to do some swing trades. I know there will be taxes on short term trading, but I can justify the tax costs with higher profits. Taxes alone will not stop me from selling. I’ve made that mistake before. I'm holding a stock where it had gone up to over 100% of my purchase price in less than a year, but I have not sold it. And then the stock had really bad news and it dropped more than 30%. Had I taken profits, I would have to pay 25% taxes (my last year’s tax bracket) on the short term gains, but I would still have come out more money. Therefore, I've come up with a more effective strategy. I will load up a large amount of shares for a fast growing company, and trade with a portion of my holdings. Of course, this will only work with a certain type of stocks, so it is important that I find high growth stocks and buy at low prices. For a different type of stock, you will use a different strategy. High yielding dividend stocks are good buys at huge dips. Accumulate at drops and hold long term. Look at SJT. What a great holding stock. I wish I had loaded up a year ago and I’ll be just sitting here collecting nice dividends. What kind of strategies do you use? What kind of stocks do you buy?

5 Comments:

At 6/02/2005 07:22:00 PM, Blogger Money Turtle said...

I use the Investor's Business Daily (IBD) as an initial screen for stocks picks. I suggest picking up WIlliam O'Neil's book: How To Make Money In Stocks. I generally focus on stocks with high EPS and Relative Strength ratings from IBD.

 
At 6/02/2005 07:42:00 PM, Blogger Smarty said...

IBD has some nice stock picks, but I would be careful. Some of the stocks may have already been bought up already. Which ones are you currently looking at?

I'll do a post on some of the IBD stocks and their performance later.

 
At 6/02/2005 08:05:00 PM, Blogger Money Turtle said...

I'm keeping an eye on Syneron Medical (ELOS). I don't have a position, but it's been basing after a big correction and it's starting to break out.

I agree alot of the IBD top 100 are very extended.

 
At 6/02/2005 08:45:00 PM, Blogger Stockjobber said...

I'm holding GOOG right now. I was more value-oriented until I read O'Neil's book. Make sure to use stop-loss orders.

Also thinking about WFMI. Love the stores, great growth prospects.

 
At 6/03/2005 12:17:00 AM, Blogger Smarty said...

ELOS has great fundamentals and a PEG ratio of 1.03.

My current healthcare watch list:
PFE
SONT
PRZ
ESMC
I should do a post on healthcare stocks.

Not saying that GOOG is not good, but I would be extra extra careful with that. The beta and P/E is crazy.

 

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