Friday, April 8, 2011

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.

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