New Rules

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.

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.