January 21st: Ed’s Daily IRA Summary   6 comments

AAPL: 8.40 to $549.07 ( 1.55% , 1.83% overall)– bought at $539.21
CZR: 0.23 to $22.80 ( 1.02% , 3.87% overall)– bought at $21.95
GNW: -0.07 to $16.02 ( -0.44% , 70.97% overall)– bought at $9.37
GWPH: 2.97 to $51.36 ( 6.14% , 55.87% overall)– bought at $32.95
NNVC: -1.06 to $4.99 ( -17.52% , 96.46% overall)– bought at $2.54
PVCT: 1.06 to $3.99 ( 36.18% , 329.03% overall)– bought at $0.93
SIRI: 0.00 to $3.71 ( 0.00% , -0.54% overall)– bought at $3.73

OVERALL: +0.58%

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Posted January 21, 2014 by edmcgon in Open Thread, Portfolio

6 responses to “January 21st: Ed’s Daily IRA Summary

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  1. Interesting article detailing a few ETF’s that utilize a covered call strategy.
    http://www.moneyshow.com/trading/article/40/OptionsIdea-30859/Two-Strategies-in-One-Trade/

  2. daily p/c ratio and volume

    DIA: 0.82, 67.3K
    QQQ: 1.18, 264K
    SPY: 1.52, 960K
    IWM: 2.33, 158K

  3. Ed – you have had some huge winners of late in a short time frame (GWPH, PVCT and NNVC). On all of these, I believe you sold into the rallies and missed a lot of upside. Do you ever think you jump out of good ideas too early? I know I intentionally held HIMX and ATHM longer than usual as I had noted the same for some of my speculative positions. (wish I had bought the PVCT at 93 cents!).

    • Marshall,
      I still have my same initial position on GWPH, so I haven’t missed anything there.

      As for NNVC and PVCT, all I sold was enough to get back my initial investment. By letting the profits run (or “playing with the house’s money” in gambling terminology), I can hold them longer with no risk. Even if the stocks drop to a penny, I could still sell them for a profit (admittedly a disappointing profit). This is all about risk management.

      As Warren Buffett once said, “The first rule of investing is don’t lose money; the second rule is don’t forget Rule No. 1.” By pulling out my initial investment, I ensure that I don’t lose money on a high-risk play, and I can still enjoy any further upside with the profits.

      • Ed – I never think of it as the “house’s” money, it is mine. And I try not to set a goal of making money on each investment, but rather maximizing my gain on overall portfolio. So the question I would ask, is not “if i sell some shares of this stock now, will I guarantee a profit” but is “what are the 15 or 20 absolute best stock ideas that I have.”

      • Marshall,
        When you’re playing penny stocks like PVCT or NNVC, you have plenty of upside potential, but you also have a $0 downside potential. By getting the initial investment out of the stock, you limit your downside to “break even”.

        Another thing to remember: Even with the great run-up both stocks have had, they can still fail.

        The best part: I can sit here and watch PVCT with a 362% profit, and not worry about losing it, because I have no risk of loss. It is impossible for me to lose money on it. I can let this stock run up to 1000% or more, and not worry a bit.

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