Amounts are rounded up or down to fit new buys, and commissions are ignored. The gain column will also sometimes contain small remainder amounts of money after stock buying. The total amount of money amassed by this plan can be seen by adding the two amount rows of the open positions. The latest trade news is listed on the Trading Stats page. Just click on the Trading Stats tab in the left pane to view what recently happened. Below is a brief history of trades and the rest of the history is on the Trading Stats page.
The first two stocks in this table are volatility exchange traded funds that act like stocks. They were bought (on paper) in April of 2012. The first half of April had both volatile and calm times. Thus, I was able to buy two opposite acting stocks at reasonably low prices. TVIX is a leveraged volatility stock that rises when the stock market falls. XIV is an inverse volatility stock that will rise whenever the market goes up. So, the two stocks cover up and down market conditions. Each stock was sold profitably.
XIV was sold during the week ending April 27, 2012, for a 15% profit. This money will sit in a cash position until XIV drops down to $10 again or until a different stock is bought. TVIX was sold on May 18 for a 35% gain at $10.80 per share. The money from TVIX was immediately used to buy ERX, a triple energy oil stock ETF. ERX was at a six-month low because the price of oil had dropped dramatically. This was a tremendous buying opportunity because oil will not stay down for long.
ERX, the leveraged oil ETF, was sold on July 2, 2012 for a small profit. The money was moved into a Cash 2 position. I was expecting the price of oil to rise a lot higher, but I noticed over the July 1 weekend that oil inventories were higher than normal. Therefore, I knew I had to sell ERX to lock in my profit since there was a good chance that the price of oil will fall again this summer due to the unusual inventory buildup. I will plan to buy ERX again in the future if the the price of oil drops below $78 per barrel.
NUGT, a gold miner 3X leveraged ETF, was bought on July 19, 2012 for $8.54 per share. It was purchased with the first Cash 1 position. I was able to sell NUGT for $13 per share in August for a double-digit gain.
NUGT was bought again on September 12 for $14.73 with money from the Cash 2 position. I normally would wait for a lower buying price for NUGT, but the stock market and gold were in a tremendous rally at this time because the Federal Reserve initiated QE3 raising the Fed balance sheet. Technical chart analysis also pointed to an uptrend. Thus, I needed to jump on the rally train before it got away. Then, when the rally started slowing down several days later, I sold the position for $17.98 per share making a profit of $322 in less than 10 days.
TZA, a leveraged small cap bear ETF, was bought in October for $15.43 per share. Small cap stocks usually fall the hardest when the stock market pulls back. Since a lot of uncertainty existed with the economy and stocks through January of 2013, the odds were greatly in favor of making a profit with TZA during a downtrend.
On the weekend of November 16, I was convinced that a strong bull rally had started after the President and Congress appeared to be ready to resolve budget differences. I also noted that $NYMO, the NYSE McClellan Oscillator had become a lot less negative. I immediately put in Monday morning sell orders for TZA holdings in three accounts. So, I was able to sell TZA at $17.55 for a profit as the Dow zoomed up more than 200 points on Monday.
I bought UDOW, the 3X Dow bull ETF, the same day with the TZA money because I was certain we would have a sustained rally through the end of December. Then, on November 23, I bought NUGT, the 3X gold miners ETF, for excellent gold prospects.
Please see the Trading Stats
page for the latest news on trades listed above. This page has become a long one and that is why I had to start a carryover Trading Stats
page to continue comments on the trades as well as gain updates.
This two stock plan, along with being in cash at times, is a package deal. I believe the best results will occur by following both of my current picks. If you try to pick just one of the two selections, you may pick the wrong one. The two picks should go together for the maximum gain. I cannot be responsible for any losses especially if you buy and sell at different price points. Do your own research, buying, and selling. My plan is only a suggestion.