2014 Year in Review: Stocks

JetBlue Airways Corp. (JBLU)

Bought 700 shares at $15.62 on 12/11

Sold 700 shares at $14.96 on 12/18

Net Profit: -$462

SolarCity Corp. (SCTY)

Bought 200 shares at $51.99 on 12/19

Sold 200 shares same day at $54.22

Net Profit: $446

Lessons Learned: Looking back, I definitely shouldn’t have traded that JBLU stock. It was already at an all-time high but I believed it could go higher. Had I waited until now to sell, I would have made a nice profit of $413 (JBLU’s high today was 16.21). But after seeing the stock take a beating, I decided to pull my money out and ride the profits of SolarCity’s Western Massachusetts expansion that happened on the 19^th. I should have seen that JBLU, in this current climate of low oil prices, should be the stock to hold on to… as airline stocks have benefitted greatly from the lows of oil per barrel. I still find it so hard to hold a stock, but the more I know what I’m doing the more comfortable I feel holding a stock. Needless to say,but I’m starting to see the disadvantage of making quick trades.

After trading with the simulator, I’m almost ready to start trading for real. Starting from the ITI trade I made in October, I've made 1780 fake dollars. My strategy is to trade based on the earnings reports on the stocks that I track. Currently I have about 30 stocks that I look at on a daily basis, from all corners of the market. I’m still getting my system set up, but I’ll be able to start trading with Scottrade in a couple weeks.

My brother Alex and I had a long conversation about stock trading and all. I was very happy to hear that he plans to retire sometime in February/March now that he has his strategies set when trading futures. I really had one of those rare genuine smiles on my face as he spoke of all the things he wants to do when he retires from paycheck work. I can’t wait to say the same. While I plan to do my earnings report strategy initially, I’ll definitely be checking out the Nathan Micaud streaming DVD that Alex wants me to buy. Even though it costs over a grand, I get the feeling that it’ll help me understand stocks much better. That understanding can yield more profit per month, and that will bring me closer to the day I when I can call my brother and say, “Hey man, I’m all done.” Oh how sweet it shall be. 

P.S.: $1780. Wanna know how pathetic that number is? Had I bought 900 shares of JBLU in October when it was $11 and held it until now, I would have made over $4500. Oh yeah, I definitely see the advantages of holding a stock longer!