Follow-up on TKC (originally tipped Weds, May 24th, at $3.92).
TKC gapped up Friday, May 26, and held at $4.15 for reasons that can only be gussed at. But a two-day gain of 5.9% is decent money. (Thank you, Market Goddess!)
Now come some realites. As I’ve mentioned in other posts, I just a hobbyist stock investor --and not a very good one-- nor do I need to be, because I made my money in the bond market (when fat money could be made), and those gains --plus SSI and a pension-- are enough to get me to age 103 or so, even assuming very adverse inflation rates and annual capital losses. In short, I solved the retirement income problem for myself, and now I trade for the fun of it.
In other posts, I also mentioned getting into JOAN and POWW, So let’s look at the the score card for those three (of the 100 or so other stock and ETFs positions I’m carrying, most of which are small, but not as small as these three).
Ticker, Size (in shares), Unit Cost, Total Cost, Present Price, Value, Gain/Loss, P/L
TKC 1 $3.92 $3.92 $4.15 $4.15 $0.23 +5.87%
JOAN 3 $1.60 $4.80 $1.54 $4.62 ($0.18) (-3.75%)
POWW 3 $1.61 $4.83 $1.73 $5.19 $0.36 7.45%
Totals $13.55 $13.96 $0.41 3.03%
Further Comment. My preference is to size positions equally relative to their risk tranche and my purpose for putting on a position, which is a carry-over from my bond investing days (and a post for another time). Thus, the three trade are speculative, $5 dollar bets that are meant to test a trading system I’m experimenting with. If the system proves viable across a hundred trades or so, then I’ll scale it up. But there’s no need to do so now.
Second comment. A gain of 3% is tiny money. But the gain was achieved in a couple of days. If the rate of gain could be sustained for a full year of trading, the project would be very worthwhile. But that’s the uncertainty and the unknown. My bet is the US eceonomy is in serious trouble and that markets are going to crash. In that case, survival will be my chief concern, not making money. That means I need to put together a sell-short campaign, and my guess is it will be needed to be up and running by Labor Day.