Frequent Trading VS. Pre-planned Investing

Coming up is my 1 year anniversary with active investing. For the last year I’ve used a trading style of frequent trading. To this point, I have a total profit of (-$47.20). That’s a negative amount, because currently my portfolio is worth less than what I paid for it. This, obviously, is not a good thing. But it was expected. Frequent trading means frequent commissions, and as I’ve posted in the past, commissions kill you.

So today I’ve setup my next type of investment strategy. For the next year I am going to move away from frequent trading to pre-planned investing. I’ve setup my automatic investments, as well as my automatic dividend reinvesting, on Sharebuilder. I’m setting up automatic deposits each paycheck, and once my account has reached the threshold of $522, I will invest in my diversified collection of stocks–all monthly dividend payers. I have used my 3 months to profit calculation to figure out this $522 figure, based on the dividend amounts, and the current price for each share.

To be open, below I will list the results from my last year of trading. Included is a dividend payout which will not close until tomorrow, but will be a difference of pennies.

STOCK TOTAL PURCHASED TOTAL SOLD PROFIT
TEU 65.0221 65.0221 $6.84
BAB 4.0772 4.0772 (-$17.40)
INTC 3.0778 3.0778 $13.24
O 4.9326 1.5408 (-$49.89)
Advertisements

One thought on “Frequent Trading VS. Pre-planned Investing

  1. Pingback: State of the Stock – January | Capitalist Cares

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s