*AV*--I just posted a P-email to someone then decided I wanted to make it public in order to solicit some help, have fun, and turn some profits.
This week I played both MIPS and PLAB and have "retroactively" made a decision. I decided that retroactive from Monday, I am committing a specified $20K to trade for the week in order to pay myself a salary of $1000/week. This is to get a certain female off my case. (who will remain nameless or else to the doghouse I go)
So, here is the deal. I sold off 1K shares of PLAB before the close to get my salary for last week. Now here is where the fun begins along with the hard work. Starting this Monday, I will be looking for a $20K investment that will yield 5% for the week real time going forward and not smugly retroactive.
I have decided that I will draw this salary of $1000 a week as long as I can. Therefore, I will be looking for an under $20 stock on Monday or Tuesday that will yield a $0.50-$1 return during the week, depending on the number of shares purchased. Should I be able to make the $1000 prior to the week's end or if it grows beyond the $1000 return, the extra profits will be added to the investment pool for the weeks to come. The key is to keep the core investment at $20K or greater while removing $1000 week for "expenses". Anytime the kitty exceeds $25K, I take a $1000 bonus, paydown $2000 on mortgage principal, and the remaining $2000 goes into a safe money market fund to help defray taxes next April.
Why outline this on the thread. Well, I think as you said, it is fun being here, it is a good humored community, and it is a group that share similar desires. If so, I think we all would like to be debt free, mortgage free, and provide ourselves with some supplemental income. The buckets you set up for the selected profits are of your own choosing<GGG>.
Over the weekends we could discuss (at a pre-determined time and for no more than 1 hour) prospects for the coming week. We can then make it a part of the Monday/Tuesday thread banter, and we will execute these trades as a group. I would expect that we come up with a group of 5 finalists for investment and each person could allocate funds as they see fit. I chose $20K as my cash kitty while others can choose the kitty value of their choice. I came up with a 5% retrun on my kitty which I think seems reasonable. I would not suggest anyone look beyond more than 5% in order to make this a realistic program.
In other words, maybe we should set up a designated weekly trading event to churn some money instead of the waiting game for the big homeruns on some of these.
It's just a thought and I wonder how many people would like to participate.
As an alternative to the above, how many people would like to discuss stock transactions that we get into at roughly the same price and bail when 10% profits are reached. Then we move to another investment and try to garner 10%, and so on. Forget about where the stock may go or when it might be taken over. Concentrate on turning as many 10% trades as possible in the shortest amount of time.
With 5 full months left till Christmas and 1 more month till the bills for Christmas come due, we have 6 months to churn 10% profits. By using the $15 and under commission online trading companies a mere $3000 investment could grow to a nice nestegg, over double of the original investment. That is, if we get 10% every 3 weeks conservatively.
Week 3 - $3285
Week 6 - ~$3600
Week 9 - ~$3875
Week 12 -~$4250
Week 15 -~$4660
Week 18 -~$5100
Week 21 -~$5600
Week 24 -~$6150 Dec1998
Week 27 -~$6700 Jan1999
To address taxes (40%) of $1300, you have 3 months to churn $3700 into $5200 to cover these costs. That is, if you take the original principal out of the kitty to pay off Christmas and not let it ride until Tax Day by just making minimum payments.
Again, this is a conservative picture of what could happen. If we did not try to hit the home runs and focused on the ones we were as sure of as possible for a 10% swing, we could create wealth out of practically nothing. A unified front could make this the most successful thread on SI as we pave the way for financial security. Think of the possibilities if we could attain the 10%/weel levels that Robin mentioned and asked for last year!!!
I was so sure and convinced that MIPS would comeback to at least its IPO price and listed my reasons. I put it on watch for everyone and a few of us finally jumped on it. Even though it may seem like Monday Morning Quarterbacking, this would have been my first candidate for the this endeavor. However, I would have not dumped after 10% but rather after 30% ($13) in order to be conservative ($1 below IPO).
I am totally convinced the community here could collectively come up with other candidates such as MIPS with as much background information as possible to convince us that the invesmtent community is overlooking undiscovered gems.
As always, I hope this sparks some conversation that could result in a cohesive investment program for a dedicated portion of our respective portfolios. My ideas could be thrown in the trashcan and replaced with a better group effort should one be presented here. I am sure that at one point in time the Index players like Patrick and the options traders like Judy could enlighten us into some real sweet high percentage deals for 10% or better. More risk but greater returns.
Andrew |
