Investing 102

[GregWeld]

By the way -- please remember that just because I use examples naming names in here - doesn't mean that these names are appropriate investments for YOU. Please don't just copy what I'm doing. I do this EVERY DAY -- for YEARS... my holdings are bought and sold for completely different reasons than what you guys should be investing for.


So for example -- the limit order for Terra Nitrogen (TNH) was put in for $204.00 for 1000 shares ---- What I wanted to explain is that the high for the day so far is $205.21.... and the LOW for the day (most likely set by my whopping 75 share fill) is $204.00


When you're buying a 1000 shares ---- that $1.21 difference between the high and the low -- is a GRAND. How many of you make a grand that easy?? So to me -- that difference is important. Would I bother doing that for 100 shares?? No -- but I might just to use it as a way to learn --- and frankly -- that would be a hundred bucks if it gets filled....so maybe that's a good way for you guys to at least feel good about "gaming" the market just a bit.

[GregWeld]

So just a follow up to these "limited" thoughts.... LOL



My Chevron order for 2000 shares at $120 was filled today... and while it's currently quoted at $119.94.... My buy at $120 is a far cry from the days high which I would have bought at had I just placed a market order.... that would have been about $1.60 plus difference! On 2000 shares -- that's a lot! Thus my statement that even if the shares go lower than where I bought -- I'm a lot closer to the market than had I paid the market high for the day.

So since I was trying to capture the $1.00 dividend being paid Monday -- I put in another 1000 share limit order (good 'til canceled) at $119.00

[chr2002ca]

Originally Posted by GregWeld

Please don't just copy what I'm doing.

Oh, darn, I guess I should go cancel that buy order I just placed for 2000 @ $120 on Chevron stock.

Yah, I know what you meant, copy on a different 'scale'. Just messin' with you Greg. I see the numbers you post and I'm like, "Holy sh_tballs....that must be nice." Thanks for all the continued great advice and helping us try to 'get there'.

[GregWeld]

So here's how my buys went down today.... all set with LIMIT ORDERS

and the price where the shares closed today in red.



06/06/2013 Buy 1,000 CVX CHEVRON CORPORATION Details $119.00
-$119,008.95 * 119.59


06/06/2013 Buy 100 NNN NATIONAL RETAIL PPTYS REIT
Details $35.18 -$3,518.30 * 36.36


The NNN was an order for 3000 shares -- I got a whopping 100 at my price. I'm okay with that... that's the way it works!


06/06/2013 Buy 2,000 CVX CHEVRON CORPORATION
Details $120.00 -$240,008.95 * 119.59


This order was filled --- and now you see what I'm saying about my cost being closer to the market price... had I put in a market order my cost would have been possibly at the market HIGH for the day of 121.49 !! I didn't hit the low either which was 118.66..... But I did buy an additional 1000 shares at 119.00 - so that brings my AVERAGE cost down closer to market!


06/06/2013 Buy 1,429 KMP KINDER MORGAN ENERGY LP UNIT LTD PARTNERSHIP INT
Details $82.30 -$117,613.10 * 84.03


06/06/2013 Buy 100 KMP KINDER MORGAN ENERGY LP UNIT LTD PARTNERSHIP INT
Details $82.30 -$8,230.45 * 84.03


06/06/2013 Buy 75 TNH TERRA NITROGEN CO LP COM UNIT
Details $204.00 -$15,300.67 * 205.25


The TNH order was for 1000 shares at 204.00 --- I got a whopping 75 at my price and the order expired at day end... Again -- that's how it works. Rome wasn't built in a day!


06/06/2013 Buy 50 KMP KINDER MORGAN ENERGY LP UNIT LTD PARTNERSHIP INT
Details $82.30 -$4,115.22 * 84.03


06/06/2013 Buy 421 KMP KINDER MORGAN ENERGY LP UNIT LTD PARTNERSHIP INT
Details $82.30 -$34,650.18 * 84.03


06/06/2013 Buy 5,700 MO ALTRIA GROUP INC
Details $35.40 -$201,785.10 * 35.81


06/06/2013 Buy 4,300 MO ALTRIA GROUP INC
Details $35.399 -$152,219.55 * 35.81

[GregWeld]

Originally Posted by chr2002ca

Oh, darn, I guess I should go cancel that buy order I just placed for 2000 @ $120 on Chevron stock.

Yah, I know what you meant, copy on a different 'scale'. Just messin' with you Greg. I see the numbers you post and I'm like, "Holy sh_tballs....that must be nice." Thanks for all the continued great advice and helping us try to 'get there'.

Sorry Chris.... I was so busy typing I missed this! Good comment BTW I got a good laugh out of it. So thanks!


Yes --- scale is "variable" with the readers here... and sometimes I'm actually kind of embarrassed to post my numbers -- but I feel they're useful to show how the market works etc... and I think it's more meaningful when you can really see what a difference it makes etc. I'm still trying to keep this as "102" (not that it's MY thread)...

I think that the basics of "best of breed" etc have been well covered. Now some of the details or nuances of investing can be introduced.

[96z28ss]

Originally Posted by GregWeld

and sometimes I'm actually kind of embarrassed to post my numbers --

Yeah really make us feel poor!

[GregWeld]

Originally Posted by 96z28ss

Yeah really make us feel poor!

Think of it more as the carrot on a stick....

[WSSix]

I like the Limit Order idea. Considering how I like to by stuff at a discount, I see it as a good way to simply name your price. I can see myself eventually using this method.

[GregWeld]

Originally Posted by WSSix

I like the Limit Order idea. Considering how I like to by stuff at a discount, I see it as a good way to simply name your price. I can see myself eventually using this method.

You can outsmart yourself using limit orders as well -- by missing a lower price by a penny or two and then seeing the market jump a buck... So they're a mixed blessing. You can stand there and watch the train pull out of the station so to speak.

So I'm watching the market -- gauging a feel for where it's headed -- and staying on top of the order fill (or not) and I'm willing to go in and change the order if needed. I've also been known to cancel an order mid-stream as well.