Stock Trading Review for period ending May 03 2019
Sold 10,000 shares of NVDA NVidia Corp on NASDAQ at $182.38 per share. I had purchased those NVDA shares at $178.75 per share. Capital Gain on sale of NVDA = $182.38-$178.75 = $3.63 per share. 10,000 shares sold at $3.63 Capital Gain each = $36,300.00 realized Total Capital Gain.
Bought 1,000,000 shares of TWTR (Twitter) at $39.30 per share. Last Market Close price on May 03 = $40.80. Potential capital gain if sold = $40.40-$39.30 = $1.10 per share. Potential capital Gain if sold = $1,100,000.00. This is why High Trading Volume is important to me.
Bought 1,000 shares of AAN at $58.00 per share. Last Market Close on may 03 price was $58.75. So potential Capital Gain if sold = $0.75 per share or $750.00 (because of the very low volume buy).
Bought 1,000,000 shares of MTP at $3.60 per share. Last Market Close May -03 price was $2.00. Potential capital Loss if sold would be $3.60 – $2.00 =$1.60 per share. That would be a potential Capital Loss of $1,600,00.00 if I sold. as long as this stock holds at around $2.00 per share, it is my belief that the price will rise back up. This stock reminded me of the danger of buying Gap Up stocks which are very low-priced.
Bought 1,000,000 shares of PINS (Pinterest) on Nasdaq at $34.91 per share. Last Market Close May 03 price was $28.36 per share. This stock was bought because it was new IPO and the price kept rising each day (that is until I bought in). Potential capital Loss if I sold = $34.91-$28.36 = $6.56 per share or $5,560,000.00 total Potential Capital Loss if I had sold. There was a huge amount of buying volume when this IPO came out. This was bought for the Long Term hold. Being an IPO there was no Technical data to go by – just high buying volume and price rising for days. I was buying the story and the rising price. Will hold and over time the price will rise (hey, Facebook has had tons of bad news lately and it’s stock keeps going up).
Bought 10,000 shares of RIG (Transocean) on NYSE at $7.60 per share. Last Market Close May 03 price was $7.76 per share. Potential Capital Gain of $0.16 per share or total potential Capital Gain $1,600.00 if I had sold.
Bought 10,000 shares of ECA (Encana at $6.33 per share. Last Market Close May 03 price was $6.76 per share or total Potential capital gain of $4,300.00 if I had sold.
So my bad picks were PINS and MTP. PINS was an IPO so I had nothing to go on except that I saw the price going up day after day. MTP was bought because it Gapped Up because it had good new from a Medical Study – their drug is working with no side effects (so far). They are expanding their Medical Study. I will not be making high volume buys on low-priced stock in the future as the risk is too high.
The CCI based Technical Trades worked and so I will stick to what I know, though Opening Gap Up trades have always been tempting to me. I had purchased as an Investment and so a long-term hold. I could have set a Sell Stop and sold out at a small loss. In hindsight that may have worked out better in the very short-term. I have a rule that one a sell a stock at a loss I will not buy it again for at least a year. That keeps me from trying to get even with the market. When I did that in the past I got hurt. Now I take the small loss and forget about it and move on to some other stock. Therefore if I dumped MTP and PINS I wold not have been able to buy back in till the middle of 2020…
Disclaimer: This post is not meant as Investment Advice, nor is it advice to buy or sell any shares in any company.. Do your own Due Diligence. Seek out the advice of your own financial and investment advisors before risking any funds in the Stock or Futures Markets. You can lose money and even all of it when investing at the Stock Market Casinos. This post is for my own educational purposes.
Postd by Vincent Banial