chart8 Perfect timing for me in some ways. Being away for the last two days and having a chance to look at the stocks, I see that for the last two days, the common direction in the market has been down and in the red. Tuesday the markets fell roughly 1% which is not bad, but for people that are not shorting the market, it was really slim pickings to make some money.

Sadly, the worst declining stock on Tuesday was Bank of America (BAC) which fell today sharply after the open. Lucky for me, I got into the stock at $12.90 for 500 shares and have always strongly insisted to apply stop losses when you are not able to watch the markets. Well this was lesson I had put into action as last night I logged into my account and had a stop loss of $13.25 set into place just to be on the safe side. This way, I would trail the upside and preserve my initial and any small profit that came with this tactic.

Almost at the open, the stock did fall below $13.25 and my trade was triggered. I sold my holding and walked away with a profit.

Total profit on (BAC) = $175

This is really peanuts compared to other trades, but at the end, a profitable execution is better than a loss any day!

Here is the market summary for Tuesday:

Wednesday:
Economic Indicator:
7:00AM Weekly Mortgage Applications
8:30AM Consumer Price Index for May
8:30AM Canada Composite Indexes for May
10:30AM Crude Inventories

News:
Adobe profit margin narrows, stock falls.

Barclays accepts BlackRock’s $13.5 bln offer for BGI.

Best Buy Sinks 7.3%; Palm Moves Smartly.

On Wednesday, I will wait for the mortgage application and oil inventories to be released before I attempt to play the markets. If things look flat, its not really worth the time and risk to make a few dollars. If I wanted to gamble, I’d rather go to a casino!

Happy Investing!

Aman, MBA

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