$PWAV, $ORCL, Part III Trading Novice Exposure for Wealth Generation



This past week was particularly good for my new trade as a trader.

INVESTMENT:


01/03/2011 2:26 PMBought45 BGP@$0.92$-45.90Executed
01/04/2011 09:30 AMSold45 BGP@$0.90$35.99Executed
01/10/2011 09:30 AMBought1 ORCL@$30.85$-35.35Executed
01/20/2011 09:30 AMBought7 PWAV@$3.67$-30.19Executed
01/26/2011 09:30 AMBought7 PWAV@$3.43$-28.51Executed
02/02/2011 09:30 AMBought4 PWAV@$3.40$-18.10Executed


POWERWAVE TECHNOLOGIES:

In this past week I bought 4 more shares of Powerwave $PWAV.  Earnings came out on the 1st of February. I was pretty happy with this decision. The stock shot up to 3.75 a share.  My purchase of 18 shares averaged in value: $3.52.  That's a gain of 0.23 per share.  Since I don't have a lot of money to drop on anything I have to make my buys in stages based upon stocks that I am interested in and are affordable.

For $PWAV my total investment has been (4.5)*(3)=13.5 in Commission and (63.36) for the 18 shares. Total cost to me: 76.86  In order for me to break even I have to have a market value of $76.86 + (4.5) which would be my last trade commission if I sold it.  My shares need to gain up to $4.52 in order for them to pay for themselves.  


ORACLE CORPORATION:

My one little baby share $ORCL I purchased at 30.85 is now valued at $32.60.  That's a gain of $1.75.  We still have to factor the buy and sell so we are looking at (4.5)+(4.5)=9.0  In order for $ORCL to pay for itself it needs to be valued at $39.85.

THE GAME OF MULTIPLES:

I chose to go with Powerwave because I saw potential in a small international company that was inexpensive to buy.  My multiple purchases hurt me with commission costs, but in order to reach a position where I make money I have to have volume.  If I chose a different stock I might increase my spread and position value, but in order to cash in that value I would have to make multiple sales which you can see hurt my small investment opportunity.  The obverse of this is that if I never started to trade at all I would not have been able to even understand this much.  In reality my stock trades make more money than if I held that same amount static in a bank account.  

Multiple shares need to be held as they work together to increase value. Also for the long term multiples held there are dividends. I have yet to understand how that works but I will let you know when it does.

JIM CRAMER and MAD MONEY: 

If you asked me a year ago if I would be watching that dumb show Mad Money I would have laughed.  Now I watch it every weeknight.  I have my little notebook and I write down what companies I am interested and I listen to the erudition of Jim Cramer.  I am not just listening to his opinion.  He has the real CEOs from different companies tell their story.  

Since I don't have a lot of money to use for trading I use someone else's knowledge and I create "watch lists". I use Jim Cramer's experience and knowledge to highlight potential stocks I may want to purchase. It's an exciting time of the day. I always think that I can't believe I never did this before because I have been buying all of these companies' products for years!

BUSINESS IS BUSINESS:

As a punk rock dude in the late 1980s I was opposed to government, big business and that evil thing called money. I still worked. I made money. I bought stuff. I was a consumer. I was a sheep. It took me a long time to see things as they are and not how I wanted them to be. I realized that it wasn't even how I wanted things to be but how I perceived things should be. It's more complicated and should be blogged later.  The essence of realization was that I was not realizing what I could do. I was focused on what I could not do. I was miserable.

Business is a natural activity for human beings. Big business is also a natural temporary activity. It's a beast that gets started and can not be stopped easily. There are some businesses I will never like.  So I don't buy their products. They change or die. The common worker living in the US can buy stocks.  Some companies will fail some will succeed. Instead of being a mindless animal consumer you can participate in the economy by buying stocks in the businesses you do business with. Offset your utility cost by owning utility stock. Offset your McDonald's habit by owning McDonald's stock. (I hate McDonald's.  I won't even take a crap in McDonald's.)

Yesterday I saw a guy buy $50 worth of lottery tickets. I worked at a gas station in Richmond back in 1991. I saw postal workers come in every day as they left the post office across the street. Those workers would spend hundreds of dollars on the lottery. I bought $35 dollars of tickets myself.  After continual loss I decided that beer had a better return value.  What I never realized is that I could have used my disposable income to buy stocks.  Anytime I inquired about buying stocks I was always given the answer: "You have to have a lot of money in order to buy stocks."  "You have to have money to make money." 

Never let someone else's limited experience determine your own ability.

GOALS:

Last week I discussed my goals.  Goal number 1 is the most important. Every trade pays for the cost of the trade and sell! 

It's extremely important to have goals with any activity. I constantly refer to my favorite book by Brain Tracy: Goals. The journey can be rewarding, but the end result needs to be visualized in order to make it through hard times.  

My goal is to show how an ordinary person can make money trading stocks.  I fully intend to show anyone how I am doing it.

COMING SOON:


  1. Financial tools
  2. Useful websites
  3. More trades
PROMOTION:


Buy the way if you decided to start trading and you use Zecco https://www.zecco.com let them know that I sent you.  If you fund up to $500 with your starting account I think I will get $50 credited to mine. I will lavishly thank you.

Check out Stocktwits.com also for the best information, trade ideas and education. Tell them OgFOMK sent you. 

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