BLUD just broke out past a buy point of $33.92 on a cup with handle. Remember to buy within 5% of this so a maximum price to pay is $35.61. I am adding shares within this zone.
Overall, this past week has been productive in the portfolios I manage. I even went back into the August 24th blog to look at the graph I printed out to show progress since then. The high back on that date was $36,667 and if you look at this graph, the portfolio is up to $39,324. Which is another 7% rise in 3 weeks. The only two stocks in this portfolio are MR and WHQ.
Again, to see the stocks that I have in my portfolio, just look to the right and you will see them in the Yahoo! toolbar. Note, however, if they are in the portfolio, it doesn't mean that it is time to buy. Just look throughout the blog and you will see when I put out buy signals.
One topic I wish to discuss is how much to invest in stocks. Well, you can easily start out with any amount that you want. Just remember that with any trade there is a commission to trade. If you have only $200 and you trade once using a Scottrade account, you are down to $193 due to the $7 commission. So you are probably asking how much do I trade if I have more than that?
Here is how I break it down.
$0-$25,000 - one stock only
$25,000-$50,000 - two stocks
$50,000-$100,000 - three stocks
$100,000-$250,000 - four stocks
$250,000-$1 mil - five stocks
Well, as soon as I get above $1 million, I will reassess what I need to do.
Now why would I invest in only one stock up to $25,000? Many reasons:
1. I only have to follow one stock while I get used to learning how to trade.
2. I can make a lot more money on one stock that goes up 20% when I have $20k versus four stocks at $5K each that may not get me 20%.
3. I have less commisions trading one stock versus many.
Good luck trading.
JD
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