I made a few transactions in the past few days. I would consider this the first time that I have actively swing traded with decent sized positions.
Grading Criteria I Use :
- Single = 2-6%
- Double= 6%-12%
- Triple= 12-17%
- Home Run = 17-100%
- Grand Slam = 100%+
- Strike Out = Stop loss out of position
- Ball to jewels = Loss greater than stop loss position / breakdown in plan
- Ball to face = 20% loss or greater
Let’s start with the boring one first because this was one I bought before my change to how I will be playing my account down the road.
- Bought 50 shares @ $55.33 in May 2016
- Sold 50 shares @ $58.33
- 5.4% gainer (Single)
This is not too significant because it was not a larger position. However, I am trying to build the habit of collecting a profit and moving on. It continued running up into the 59s after earnings and is now in the high 58s. I left a few shekels on the table. However, the earnings on VLO gave me an opportunity with my other trade…
HollyFrontier Corporation (HFC)
- Bought 400 shares HFC @ $23.00
- Sold 5 shares @ $25.00
- Sold 395 shares @ $24.90
- 8.26% Gainer (Double)
I think this was my favorite trade from the week (not best) because of the two transactions it took to get rid of my shares. Before the day started I had a limit sell order placed at $25.00 per share. I was only able to get rid of 5 shares at this price. You read in books that for every buyer there must be a seller and vice versa. However, I have never actually experienced an issue with getting rid of or acquiring shares in one swoop. Am I happy about having to pay $4.95 twice to my broker? Nope. There are goods and bads to everything. A bad is that I do not have the ability at the moment to constantly monitor my positions. I have to rely very heavily on limit buys and stop losses. There are also some goods though which will be apparent in my next trade…
Hanes Brands Inc (HBI)
- Bought 450 shares @ $23.85
- Sold 450 shares @ $26.93
- 12.91% gainer (Triple)
Lady luck was on my side for this trade. Hanes reported after the bell closed on Thursday and guess they did well / people liked it. It ended up at $25.05 after hours. I thought about it and decided I would try and take my 5.03% gainer at $25.05 and walk away. I wasn’t even sure if I would get it after my experience trading HFC. I thought there might be more people taking profits ahead of me with faster access. Friday morning I managed to dump a quarter of my large coffee from Mickey D’s in my lap and forget my running shoes to a 1.5 mile foot race. Had to run in garbage minimalist shoes that I had not built up to. Calves were not pleased. After all of this, I was not expecting great things from my HBI. Best case scenario in my head was taking my 5% gain and roll into a relaxing weekend. I was leaning towards the option that my trade would not go through and having to watch the stock tank.
Apparently, I was right about people having quicker access than me. However, I was wrong in which direction they would push dthe stock. I ended up selling at $26.93 which was very close to its high of $27.07. The stock closed at $25.77. If I was actively watching this position then I doubt I would have been able to sell at the price I did. I consider the difference between 5% and 12% lucky. I did actually take a look at HBI in an earlier post on here and am happy to see I could turn a profit on it. I was pretty euphoric after this so decided not to touch anything else in the market for the day. I thought about it but kept squashing the ideas as they popped in. I realized that I was on a high and my mental state was not where it needed to be to make rational decisions.
Plan going forward
- Starbucks (SBUX) reports NOV 3rd after bell. Give me 60s+ and might close out
- Kroger (KR) reports DEC 1st. If it pops before then I’ll probably take some off the table, adjust my stop loss accordingly, and wait for earnings
- I’m still watching refiners (WNR,HFC,PBF), Twitter (TWTR), and shipping stocks (SFL and NAT)
- I do not have a solid plan about what to do with cash position but don’t mind waiting until I figure something out
Hope everyone enjoys his or her weekend!