Sunday, July 13, 2008

Stocks Update

I had sold some PFE at 18.33 but still hold many shares. I sold my GE prior to the earnings report, taking the 6% loss. I added to my CNB position, which swung from an unrealized 3% gain to an unrealized 11% loss. I also received dividends, which are not factored into the calculations below. If I pick stocks well, my picks should do well even without factoring in dividends.

Thus far, it appears I am doing slightly better than the overall market, but this is bittersweet, given that the S&P 500 has lost over 10%
in less than two months. I had removed most of my money from the market two months ago, so I am not concerned--yet. "The market can stay irrational longer than you can stay solvent," the saying goes. Thankfully, all of my open positions are in retirement accounts, so I can wait for years until the market becomes rational again.

One benefit of keeping track of my trades is I can see which styles work for me. So far, it is clear I am better off with short term trades (100% positive record) than long term ones. I place very large bets when making short term trades, and smaller bets when establishing longer term positions. Therefore, it's as if I bet 5,000 dollars on red in roulette, win quickly, but then give some of my
gains back when I overestimate my intelligence and go play poker for a few hours with a 1,000 dollar buy-in.

Open Positions

CNB = -11.5
EQ = -8.0
EWM = -8.54
IF = -11.8
PFE = -7.22

Average of "Open Positions": losing/negative average of 9.41%

Closed Positions:
Held more than seven days but less than one year:
GE = -6.4
PNK = -16.7%
PPS = -2.8

WYE = +2.4%

Held less than 7 days:
GE (1.0%); ICE (2.0%), MMM (0.5%), MRK (0.1%), PFE (1.3%), SCUR (15%) (Overall record in this category is a 3.31% average gain)

PFE = +0.5%
GE = +0.5% (Updated on July 14, 2008; bought at 27.15, sold at 27.30)
XLF = +4.3% (Updated on July 15, 2008)

Average of "Closed Positions" sub-categories, except for Daytrades: losing/negative 4.59%

Combined Total Averages, excluding Daytrades: losing/negative 7.0%

Compare to S&P 500: losing/negative 10.5%
[from May 30, 2008 (1385.67) to July 13, 2008 (1239.49

The information on this site is provided for discussion purposes only and does not constitute investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence.

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