by Das Brain
Recently I sold some shares in Corning NYSE: GLW. That’s Corning stock on the New York Stock Exchange (NYSE). I sold 500 shares in total, the breakdown is as follows:
Bought 200 shares @ $4 = $800 Dec, 2002
Bought 300 shares @ $7.15 = $2145 June, 2003
Total opening trade cost = $2945 USD
I sold 500 shares @ $21.15 = $10,575
So, total amount taking in to close the trade was $10575 USD.
The profit is calculated as follows: $10575 – $2945 = $7630 USD. Then subtract $29 X 2 = $58 for buy/sell commissions. So this is $7630 – $58 = $7572 USD.
Not bad for holding the stock for about 4 years. I was actually planning on holding on to these Corning shares longer, but given the current circumstance of my employment income stream halted, I needed to have some emergency funds.
Now, one very important thing to note is when the shares were purchased. The general rule of trading in the stock market is “Buy Low, Sell High”, but very often this is much harder than it sounds and has everything to do with timing.
Everyone remember 9/11/2001 when the stock market took another tumble, shortly after the .COM crash. After this time the market had some wild swings, but it mainly trended downward and then sideways. By looking at the chart below you can see where I bought (green arrow and dot).
I knew that Corning was a good quality stock, and that this was pretty much near the bottom and was an opportunity. The decision to buy was a long term play, I was looking to make a nice return 4-5 years out, and I did once I sold it.
Learning to read charts and spot trends is one of the toughest things to do, when looking at the market. However, if you keep at it and get the knack of it, you can profit from your findings if you apply it properly.
My brother got me into trading when I was 21 years of age and I haven’t stopped since. From that time, I started studying technical analysis and seasonal market trends. It’s hard work and I spend a lot of time reading about it.
Come back to MoneyAccumulator.com I will be sharing some more insight into this world of charts and trends.
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