My Automatic Investment Plan just Posted.
Here's a summary of the transaction:
04/12/2011 - Transaction History - Buy
Ticker Price/ Principal Amount Fee Total
GLD $141.08/ $146.00 $4.00 $150.00 (GLD Closed at $141.61 - Good!)
XLNX $30.69/ $36.00 $4.00 $40.00 (XLNX Closed at $30.64 - Down)
WM $37.75/ $76.00 $4.00 $80.00 (WM Closed at $37.67 - Down)
So I learned that Sharebuilder will collection commissions (fees) within the investment amount I put in for each position. Basically, I could have invested my $300 and the fees would have been included within the $300 investment rather than getting charged the fee after. This is good for those who are a bit cash strapped. However, the $4 per investment could have bought some more "mini" shares of my stock positions.
Anyway, I just have to put in some NEW RULES for our Investment Strategy:
1. I will always keep 10% of my portfolio in CASH. The reason is to have some cash on hand to catch bargain stocks and have some liquid cash for other purposes.
2. I will have ONLY 10% of my portfolio in Gold (GLD). Gold is just a hedge for me. I do not plan to get rich off gold.
3. Each position will ONLY cover 20-25% of my portfolio. This is to keep my diversity and spread out my risk across my portfolio.
Tuesday, April 12, 2011
Friday, April 8, 2011
First Automatic Investment Plan
My recurring deposit on April 11 will be available on April 12.
The automatic investment plan will be executed on April 12.
Here's what I put in: $300
$150 for (GLD) SPDR GOLD TRUST ETF
- My gold hedge. I plan to have 10% of my portfolio in gold. Since I cannot afford to stock the actual gold, the ETF would do.
$80 (WM) Waste Management
- Another dividend play. With a 3.60% dividend yield, this Industrial/Waste Management stock is very attractive to me. Add to the fact that they have multiple streams of income (Collection/Recycling/Transfer/Disposal of waste, Recycling Materials (aluminum,etc) Brokerage, Rental of Port-o-Lets to municipalities and commercial customers, Self-storage, Street Sweeping and Land Fill contracts). Only hindrances are Government regulations, Competitive market and fuel costs.
$40 (XLNX) Xilinx Inc
- Building up my position before the next earnings date 04/27/11.
Total Investments = $270
Total Fees: $12 ($4 each trade)
The automatic investment plan will be executed on April 12.
Here's what I put in: $300
$150 for (GLD) SPDR GOLD TRUST ETF
- My gold hedge. I plan to have 10% of my portfolio in gold. Since I cannot afford to stock the actual gold, the ETF would do.
$80 (WM) Waste Management
- Another dividend play. With a 3.60% dividend yield, this Industrial/Waste Management stock is very attractive to me. Add to the fact that they have multiple streams of income (Collection/Recycling/Transfer/Disposal of waste, Recycling Materials (aluminum,etc) Brokerage, Rental of Port-o-Lets to municipalities and commercial customers, Self-storage, Street Sweeping and Land Fill contracts). Only hindrances are Government regulations, Competitive market and fuel costs.
$40 (XLNX) Xilinx Inc
- Building up my position before the next earnings date 04/27/11.
Total Investments = $270
Total Fees: $12 ($4 each trade)
Week Lessons
I just did a rear view mirror look of my investment moves last week.
Even though the market value of my investments are up, I'm still behind due to the fees that was charged to me to execute my trades.
Recap:
Total Money Put in fund: $200 + $50 bonus = $250.00.
Market Value of investments: $221.55 (as of 9:58 am PST)
Loss: $28.45
Fees paid $29.85.
Lessons learned:
Purchase positions that would bring more bang for my buck after fees.
ex: Buy 5 LULU at $90 each ($450) at one time with only $9.95 paid in fees instead of 5 different trades of LULU at $90 each ($450) and pay $49.75 ($9.95x5) in fees. Whatever dollar cost averaging discount I get from buying in different times would have been eaten by the fees.
Plan of action: Perhaps do a monthly trade of blocks of stocks instead of buying one-by-one. Also, do the automatic investment plan where the fees would be $4 instead of $9.95.
Even though the market value of my investments are up, I'm still behind due to the fees that was charged to me to execute my trades.
Recap:
Total Money Put in fund: $200 + $50 bonus = $250.00.
Market Value of investments: $221.55 (as of 9:58 am PST)
Loss: $28.45
Fees paid $29.85.
Lessons learned:
Purchase positions that would bring more bang for my buck after fees.
ex: Buy 5 LULU at $90 each ($450) at one time with only $9.95 paid in fees instead of 5 different trades of LULU at $90 each ($450) and pay $49.75 ($9.95x5) in fees. Whatever dollar cost averaging discount I get from buying in different times would have been eaten by the fees.
Plan of action: Perhaps do a monthly trade of blocks of stocks instead of buying one-by-one. Also, do the automatic investment plan where the fees would be $4 instead of $9.95.
Week Summary April 4 - April 8
Total Stock Positions: 3 (LULU, XLNX and ETP)
Total Money Invested: $0 (This week)
Total Fees Paid: $0 (This week)
Cash on sidelines: $13.01
Total Portfolio Value as of 04/08/2011 = $221.64 (as of 9:53 am PST)
YTD
Money Invested: $207.14
Fees Paid: $29.85
Total Money Invested: $0 (This week)
Total Fees Paid: $0 (This week)
Cash on sidelines: $13.01
Total Portfolio Value as of 04/08/2011 = $221.64 (as of 9:53 am PST)
YTD
Money Invested: $207.14
Fees Paid: $29.85
Friday, April 1, 2011
Week Summary March 28-April 1
Total Stock Positions: 3 (LULU, XLNX and ETP)
Total Money Invested: $207.14 (Including $50 bonus)
Total Fees Paid: $29.85 ($9.95 x 3)
Cash on sidelines: $13.01
Total Portfolio Value as of 04/01/2011 = $218.68
YTD
Money Invested: $207.14
Fees Paid: $29.85
Total Money Invested: $207.14 (Including $50 bonus)
Total Fees Paid: $29.85 ($9.95 x 3)
Cash on sidelines: $13.01
Total Portfolio Value as of 04/01/2011 = $218.68
YTD
Money Invested: $207.14
Fees Paid: $29.85
Third Stock Pick
Today, I got in Energy Transfer Partners, L.P. (ETP) at $52.14 (even though my LO is $52.15 - I must have typed a "4" instead of a "5".. lucky for me).
I got charged the standard $9.95 commission for the trade. So total transaction is $62.09
I first heard about ETP from Jim Cramer's Mad Money. What struck me with the stock is the dividend yield of 6.70% which considered high. this made me think if the stock is an accidental high yielder... maybe so. So After I waited the standard two day grace period (to avoid the "Cramer Bump"), I Put in my LO and got in my position.
I got the stock due to high dividend yield and as my Natural Gas play. Due to the Nuclear disaster in Japan and the Middle East Tensions, I predict that Oil and Natural Gas will spike in prices as we lead in to the Spring and Summer months (Lots of people would be driving). As Cramer repeatedly mentioned in his show, Natural Gas is a more practical bridge fuel for our cars and energy use than solar and wind energy. Also, the USA has a surplus or Natural Gas that we may EXPORT some to other countries.
Also, ETP makes their money thru Natural Gas Midstream, intrastate transport and storage in the US plus they also have a network of retail Propane Gas stores. ETP's debt mostly consists of investments in pipelines and discovering new sources of Natural Gas. As mentioned in their 10k report, ETP knows that failure to invest in pipelines and new sources of Natural Gas will severely damage their gross margins and market growth. Therefore, even though I do not like companies with a lot of debt outstanding, the reasons ETP gave sounds reasonable and is necessary to further their growth and competitive edge.
However, I will keep a watchful eye on this stock. My goal is to own 10 shares of ETP by 12/31/11. I would sell if the following happens: 1) Dividend is cut/ Eliminated 2) Government regulations hinder or hurt the adaptation of Natural Gas as a viable alternative source of energy.
Exit strategy is my standard 10% gain or the stock reaching a high of $60.
I got charged the standard $9.95 commission for the trade. So total transaction is $62.09
I first heard about ETP from Jim Cramer's Mad Money. What struck me with the stock is the dividend yield of 6.70% which considered high. this made me think if the stock is an accidental high yielder... maybe so. So After I waited the standard two day grace period (to avoid the "Cramer Bump"), I Put in my LO and got in my position.
I got the stock due to high dividend yield and as my Natural Gas play. Due to the Nuclear disaster in Japan and the Middle East Tensions, I predict that Oil and Natural Gas will spike in prices as we lead in to the Spring and Summer months (Lots of people would be driving). As Cramer repeatedly mentioned in his show, Natural Gas is a more practical bridge fuel for our cars and energy use than solar and wind energy. Also, the USA has a surplus or Natural Gas that we may EXPORT some to other countries.
Also, ETP makes their money thru Natural Gas Midstream, intrastate transport and storage in the US plus they also have a network of retail Propane Gas stores. ETP's debt mostly consists of investments in pipelines and discovering new sources of Natural Gas. As mentioned in their 10k report, ETP knows that failure to invest in pipelines and new sources of Natural Gas will severely damage their gross margins and market growth. Therefore, even though I do not like companies with a lot of debt outstanding, the reasons ETP gave sounds reasonable and is necessary to further their growth and competitive edge.
However, I will keep a watchful eye on this stock. My goal is to own 10 shares of ETP by 12/31/11. I would sell if the following happens: 1) Dividend is cut/ Eliminated 2) Government regulations hinder or hurt the adaptation of Natural Gas as a viable alternative source of energy.
Exit strategy is my standard 10% gain or the stock reaching a high of $60.
Finally Got LULU
Today I finally got LULU at $89.00.
It's 4 points up from when I started following it on 03/28/2011. Thanks to a pullback where people took in some profits, LULU is back down from $92 to where i finally got my LO of $89.00.
Also, today I just got the $50 account bonus for opening a new account. This money will be used to buy more stocks. I'm looking at Energy Transfer Partners, L.P. or ETP. I need to do more homework.
Stay tuned.
It's 4 points up from when I started following it on 03/28/2011. Thanks to a pullback where people took in some profits, LULU is back down from $92 to where i finally got my LO of $89.00.
Also, today I just got the $50 account bonus for opening a new account. This money will be used to buy more stocks. I'm looking at Energy Transfer Partners, L.P. or ETP. I need to do more homework.
Stay tuned.
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