I will start off with a summary of my status and a bit of a background and then move on to daily status reports ( I'll try) and observations of actual stocks and results and all the variables and dynamics that effects the ultimate buy-sell variability. I will also go a bit into non-number crunching activities that may play a part in the selection of these stocks....after all, has anyone really done a real study of prayers with respect to the stock market? And if so, who is the best "God/ Angels/ DemiGods/Spirits" with the best results? Or is the well known activity of writing down one's desire/wishes the best approach?
My objective here is to predict the stocks behavior before I buy them or recommend anyone to buy them as opposed to rehashing the results and note down the reason for my decisions.
So, I will start with a quick summary of the present situation. I will be far more detailed later on...promise.
Around July 2011, I started off with $500.00 in Scottrade and because of the limited size of of my input money I had the perfect situation for playing what I really wanted to play--the penny stocks.
Learned a lesson or two, but came out OK, the initial $500.00 fluctuated between 900 to 1220 or so and settled at 1140 by October, 2011, and thus I promptly put in another $2600 to expand my ability to make more money and soon enough the new $3700 went over 5k in less than a week or so.
So, obviously the next step was to play with bigger money. Begged my wife to play with one of our lower IRA funds and with the results I had, she agreed. So, added additional account of 5k individual, 5K Roth IRA and 6.7K traditional from ING Direct. My first move was to transfer the individual account from ING Direct to our bank account to be used for Scottrade or emergency money because these accounts in ING Direct had 9.95 per trade (compared to $7.00 for Scottrade) and incredibly high commission for any stocks under a dollar. A typical 200,000 or share purchase of these penny stocks would be like $70.00 or more in ING and $10.00 in Scottrade, a difference of more than $100.00 per full Buy and Sell transaction.
ING Direct also had quite a few more restrictions with settling money, unlike Scottrade, but I kept the Roth and Traditional in ING Direct and basically only played stocks that were above $1.00, since the fees difference between ING and Scottrade was only $6.00 or so for a full Buy-Sell transactions ($14.00 for Scottrade and $19.90 for ING Direct) and I also liked the fact that ING Direct forced me to play with safer stocks than the penny stocks I'd been playing with at Scottrade. I decided to keep the IRA accounts in ING Direct. Not that I couldn't play with these dollar and above stocks in Scottrade, just that the price difference wasn't too great and I liked the ideal of having multiple brokerages.
I quickly sold off my wife's stagnant Gold stocks as they were losing money big time and replaced them with my stocks. The $6.7K traditional quickly went up to 7.5K while the 5K Roth stayed at 5K (better than the Gold shares that were continuously going down).
So, with the above results, my wife let me play with another IRA account (traditional) residing in Citibank Retirement account and this time this account had 22K and at the moment of this writing, this account is slightly above 25K, but I can't do anything with it for at least another week as we moved this account over to Fidelity two days ago and are currently waiting for the completion of the transfer. The reason why I decided to move this account was because this IRA from Citibank is run by Pershing and has some of the most wicked fees I've ever seen...$19.95 per trade, as opposed to $7.95 for Fidelity. Of course all these movements were done within 4-5 minutes of my agreement with my wife and I didn't do too much research, otherwise I might have moved this account to Scottrade, but I like the idea of having money in three different brokerages.
Wednesday, October 26, 2011
Thursday, July 10, 2008
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