Tuesday, October 2, 2007

2 Quick Lessons

1) If you have a strong conviction about a stock - go with it. I wrote last that I would be back in on CLNE regardless of price on Monday. I didn't do it and now I have watched it go from $15.25 to $16.50. A 6% gain in 2 days. It was even up today on a down day!

2) A lesson about commissions - Buy in 50 share lots or more. Preferably 100 share lots. Think of it this way. If you buy 20 shares of a $20 stock and commissions are $10 each way (buy and sell) that stock has to go up $1 dollar or 5% just to break even. If you bought 100 shares now the stock only has to go up $0.20 or 1% to break even. Got it? Good.

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