Thursday, January 14, 2010

Another Day, Another Lesson

So I realized a major draw back to my small scale trading is that the commission rates ($9.95 per trade Sharebuilder) drastically cut any gains I make on a stock. Just to get out of Citi with no losses I need to sell the shares at $4.10. That is a 16% increase on my purchase price… Sure that doesn’t sound like much, but 16% increase on a stock is huge and I can’t even be sure that it will ever happen (unless I am very lucky). So from here on out, I must consider this $19.90 flat cost in my trades…

Don’t get me wrong; while this is a significant blow to my future trading, I have not lost hope. Its better that I learned this now, then to have sold my Citi at what I thought would be a gain, just to realize a loss.

So my greed has been further refined, though not completely defined. I will have to wait and see with Citi, no point in rushing into a rash decision.

In other news, a little company known as Intel (perhaps you’ve heard of them) just posted decent results. I mean, sure they blasted beyond expected results, but it’s Intel… what else is new.

Sadly there will be no new purchases till next week. Please don’t cry... I promise I will buy more stocks early next week!

“In the world of economics there are gains and there are loses. Gains wanted.”

Initial Balance: $500.00
Current Balance: $489.35
Cash: $366.50
Stock: 35 shares Citigroup $122.85 (as of post)
Total (+/-): $-10.65

-tCT

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