Holding the Course: Not Jumping out of the Market – entry 007
(This post is part of a series of posts about being an investor newbie)
At the end of the week, I checked my positions and I was up about $50. That means I started with $1,000, paid $20 in commission fees to buy 2 stocks ($980) and invested about $940 (leaving $40 in cash) and it was worth a total of $1,050. That means I earned 7% in three weeks, although after fees it is only 5%. If I sold the stock I would spend an additional $20 in commissions which would reduce my return to 3%. What a bummer. Of course I am not planning to sell the stock anytime soon. At least not my 6 shares of LGND. It is up over 10%. My 7 shares of LCI have gone nowhere. I would consider it an underperforming stock. Of course, given the market the way it has been over the past few weeks, anything positive is probably a good thing.
I continue to watch several stocks to see if anything is a great buy. If I see one that looks good, I will likely cash out of LCI and purchase a new stock. But what? Do I buy more LGND? Put all my eggs in one basket? That seems risky. And not too much fun either. So probably not. Here is what I am watching right now to see if I should jump on any stock. Also, I won’t buy while the uptrend is under pressure. It has been under pressure most of the last few weeks. (Note: I am monitoring about 20 other stocks, but these are the ones I am looking at as a possible next move).
(Disclosure: Stocks listed in this post are based on the research of the author but DO NOT constitute investment advice. They are simply the personal opinions of the author based on independent research. Some of the stocks listed may be owned by the author and by The Money Professors. Neither The Money Professors or the individual author of this post are licensed security advisors or brokers.)