Re: Stocks Purchased Today

On Jan 28, 7:04 pm, Islander <nos...@xxxxxxxxxxx> wrote:
mg wrote:
On Jan 28, 11:17 am, Islander <nos...@xxxxxxxxxxx> wrote:
mg wrote:
On Jan 23, 12:03 pm, mg <mgkel...@xxxxxxxxx> wrote:
I joined the crowd and bought banks today:
500 shares USB ($31.60)
200 shares WFC ($29.30)
200 shares BAC ($39.34)
In addition, I bought:
100 shares PFE ($22.41)
And I bought:
1000 shares QQQQ @ $42.38
The US Bancorp, Wells Fargo, Bank of America and Pfizer are long term
trades. They all have great dividends. The QQQQ purchase is short term
(a few hours or a few days).
Sold everything this morning except Europe today when the DOW was at
about 80 and started moving down. Probably made about $3000 with all
the fooling around. I bought some DBA (Agriculture) and GLD (Gold).
I'll probably continue to ease into these two positions over time.
You put nearly $75K at risk and got out with $3K short term capital
gain. If it hadn't been for the gain on Thursday, you would have lost
money. Not my idea of a good time!

I've been mostly retired from trading since I retired in late 2001.
However, my method has always been to invest for only a few hours or a
day or two. Usually, I invest in indexes and I used this method
everyday between about February 1998 and December 2001 with amounts in
the hundreds of thousands. I made a lot of money in the 3 years that I
was active.

When you trade with a certain amount of money, you are not risking the
entire amount in any one trade. In the case of indexes, for instance,
you are usually only risking about 1% or less and in a worst case
approximately 4%.

However, right now, I am tentatively planning on transitioning out of
my old method of short-term trading into long term investing by buying
Gold (GLD) and agricultural products (DBA) and I've already bought
some of both. I do consider long term investing in commodities risky
and I plan on going slowly. However, I am becoming more convinced
every day that the prices of gold, wheat, corn, soybeans and sugar are
going to go higher and higher as inflation goes higher and higher. I'm
also thinking about investing in natural gas and oil if we have a
recession and it takes a big dip.

DBA was up 1.9% today and GLD was up 1.76%, incidentally.

At my age, my preference, by the way, would be to not invest at all
and just park my money in bonds, for instance. However, one can't keep
up with inflation with bonds. In fact they have become a risky
investment and I an thinking about shorting them if they go up again
with Bernanke's anticipated 50-point cut on Wednesday.

I'm guessing that you enjoy playing the market and that is OK. Too
risky for me in the current market and I'm content to sit it out in
relatively safe investments. I keep enough liquid to see me through
three years if necessary and the rest is invested for the long term. We
live modestly and don't need to take unnecessary risks.

I used to enjoy playing the market before I retired. Now, I don't so
much anymore. But I feel that I have to get back in to survive what I
see as coming stagflation. I live modestly also, by myself except for
Sadie my dog, and haven't bought any big-ticket items since I retired,
although I do buy a lot of toys like audio/video equipment, computers,
and riding lawnmowers, new snowblowers, and stuff for my workshop,
etc.



.

Relevant Pages

  • Re: And they say the property market is falling ?
    ... The South sneezes and us oop North catch flu. ... The commercial market boomed amazingly in the mid-late 90's, ... I know too many people who bought their houses at the peak. ... I am starting to look for where new investing is occurring before the ...
    (sci.electronics.design)
  • Re: a melt down....share market saw biggest plunge in years !
    ... Speculators are divided into those who play ... under-valued shares and bet on them. ... When the market is rising, ... Those bought at ...
    (soc.culture.singapore)
  • Re: New Republican Slogan
    ... Looking at today's market, it wouldn't be hard to fall ... if you bought into the index funds at the ... I could have bought shares at around $100 ...
    (rec.sport.golf)
  • Re: a melt down....share market saw biggest plunge in years !
    ... 'Trading in Shares'. ... When the market is rising, ... They are forced to sell their shares at great losses. ... Those bought at ...
    (soc.culture.singapore)
  • Re: With all the plant closings, why are we optimistic?
    ... Their shares had been lacklustre until that day but rose signficantly in price afterwards. ... When someone has a margin account, they have a minimum amount of cash in it and are, effectively, investing on credit. ... As the market goes down, more cash is required to cover the position and, often, the investors in question don't have it on hand. ...
    (sci.research.careers)
Loading