Trying Again

I just placed a LO for LULU at $88.90.

Currently, LULU is at $89.17, $0.08 off the 52-week high of $89.25.

I expect some profit taking tomorrow and I can finally get a position in LULU.  Even though the stock price seems high and I may have missed the rally, my reason to invest in LULU (Growth in US, Male and Youth Market, Opening a Store in Hong Kong and Possible 2:1 Stock Split) has not changed.  Unless these fundamental info changes, I'm bullish that LULU still has room to grow.

First Trades In...

I had to adjust my limit orders from yesterday.

The limit order prices I set were too low which resulted to me to miss a great rally today.

I kept my emotions in check and tried my best not to chase the rally by doing Market orders and at least I was able to put my position in at a reasonable price.

I was able to adjust my LO for XLNX from $31 (Too Low) to $33.00.  $0.16 more than the 03/28/2011 closing price for XLNX. As of this posting, XLNX's trading day range was $32.38-$33.14.  Had I put in my LO for $32.50, I would have ridden the rally to $33.14.  But then again, no use in crying over spilled milk.  I did not lose money and that's more important.

First lesson: Be mindful of my entry price.  Try to get a stock on a pullback but be realistic with your target price.  I may want to buy Apple Stocks but I'll wait for a long time before I can get it at $1 (as an example).

With 1 hour left till the closing bell, XLNX is holding steady at $33.04.

I tried to adjust my LO for LULU from $83 (again, too low) to $87.90.  $2.63 higher than yesterday's closing price.  Unfortunately, LULU broke it's 52-week high today and has stayed their for most of the day.  I have to re-evaluate my LULU strategy before setting up another LO.  In as much as I want to get in to LULU, I fear I may have missed my opportunity.  Well that's life.  There will be other Bull Markets for me to ride in the future.

Also, this will be the first and last time, I'll adjust my LO's.  The reason I put in the LO is get the stock for the price I want.  The key from now on is to be very particular (and realistic) when it comes to pricing my target price.

First Stocks Purchased

March 29, 2011

Stocks Pruchased:

• Lululemon (LULU) 1 share at Limit Order of $83.00 - I bought LULU for the potential growth of the Lululemon brand in the USA.  LULU is also expanding their brand to Men's and Youth Apparel.  The Fitness and Health trend is growing and the lifestyle and brand marketing LULU is employing have resulted in the growth of sales from the growing fitness-conscious market especially women.  LULU has outperformed the S&P, Nasdaq, Nike and Adidas. (Limit order $83 + $9.95 Base Commission = $92.95)  I plan to have 10 shares of LULU by June 8, 2011.  I will also watch the possible STOCK SPLIT that the shareholders will vote for in June 8, 2011.  My price target to SELL LULU is $100 by 01/30/2012 or gain of 10%.
• Xilinx, Inc (XLNX) 2 shares at Limit Order of $31.00 - I bought 2 shares of XLNX for the 2.00% Dividend yield (XLNX recently boosted it's dividen from 0.16 to 0.19). XLNX is undervalued compared to it's competitor Altera (P/E Ratio of 17.31 vs. XLNX's P/E Ratio of 14.10).  Analyst put a target price of $40 within 12 months.  They are releasing their new programmable chip called "Zynq" that include a CPU core from ARM Holdings.  ARM CPU cores have been used in mobile devices most notably the A5 Chip in the iPad 2.  Will watch for the 04/27/11 earnings report. (Limit Order $31 (x2 = $62) + $9.95 base Commission = $71.95).  I plan to have 10 shares of XLNX by 05/31/2011.  I plan to SELL XLNX at $40 by 01/01/12 or a gain of 10%.

Initial Investment Cash = $200.00

Transactions: 1 share of LULU at $83.00 and 2 shares of XLNX at $31.00 

Fees: $9.95 x 2 transactions = $19.90

Day's Total transactions: $164.90 

Liquid Cash on Hand = $35.10

I left 17.6% of my cash liquid for the possibility of buying more stocks on a pullback.

I like to lock in my profits when my investment gains 10%.. at least decrease my position and hopefully play with the house's money.

First Funding

I just transferred $200.00 to our Investing Fund.

Unfortunately, I have to wait 1 business day for the funds to be available for Stock purchases.

Initial Investment: $200.00 on March 23, 2011

Opened Account - Day One

Today, on my birthday, we decided to open our taxable investing account.

We decided to open this account after we paid off our debts (c still has the car and i have a bit cc charges to be paid this month) and have some extra discretionary income to spend.  So we might as well invest it and make some extra cash while learning about investing in stocks.

I'm thinking about picking 5 different sector stocks for diversification.

Here are my sectors:

• Tech 
• Retail
• Industrial
• Entertainment
• Food

Now I just need to fund the account and start investing.