August 22, 2011

Analyzing Your Stock Activity

  1. List your investments in order of their previous performance since your previous evaluation period:
    1. HL  $7.12 $7.59 Increase of 6.60%
    2. SLV $40.19 $42.61 Increase of 6.02%
    3. CSCO $15.70 $15.06 Decrease of 4.08%
    4. And So on.....
    5. This way you can easily recognize your winners and losers
  2. Determine your potential Gain or potential Loss (don't buy a stock with a potential loss 90% and potential gain of 10%).
    1. Suggestion:
      1. write down the price at what you expect to sell if you have a loss (4% or less below your purchase price
      2. write down the price at what you expect to sell if you have a gain (10% or more from your purchase price OR maybe when your stock's P/E ratio increases 100%)
  3. Nathan Rothschild said, "....I never buy at the bottom, and I always sell too soon."

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