Buying Stocks

[Declan]

I sold my measly 15 shares of Lyft at 43.08. I bought at 41.03.

This was a very good percentage gain and is a good example of what day traders do, when successful.

But I certainly am not a day trader and the odds are stacked against day traders. They do fine in a bull market but get killed off in a bear.

But it is what many do. Buy a stock before earnings and some people who want more risk will buy options.

I think stocks , except commodity stocks are going to fall.

 

[Declan]

The news of the day is that interest rates are up again today after the big rise yesterday and the view is that the 10 year will not go below 2% again. I agree.
So stocks in general has no rebound after the drop yesterday, a very bad omen.
But my trial portfolio is doing great.
LYFT that I sold has dropped and the three I own here have risen very nicely. The strongest being AG.
Monday if this continues I will add more AG at least.

In my own main account, I am fully all in of course in mining stocks and options.

But here, I hope to show in real time how to gradually increase just using simple arithmetic. You do not even need to know anything about the company and all that knowledge open to the public is already built into the price anyway.

 

[Declan]

There may be a big event this weekend so I did something that I should ave held on til later.
I added 35 shares of AG at $11.11.

This brings my average cost to $10.39 and I will raise my sell stop to $9.95.

 

[Declan]

I have a sweet spot now with AG so I added another 30 shares at $11.35.
This leaves me with 195 shares at an average cost of $10.53. I will raise my stop loss to $10.23.
If I hold to this rule, I can only lose at worst 20c a share and at the moment am up 80c a share.
I need to let it ride now for a while before adding more because it has had an unusually strong run

 

[Declan]

I can barely believe that AG is now up 4c at $11.37 after being dropped down to 10.81. That is very encouraging when silver itself is down about 60c on tensions easing. Still 3.5 hours left in the trading day though.

 

[Declan]

Nice. Added another 30 shares of AG and this is going my way.

 

[Declan]

I hit a lucky break with AG, it quickly has risen about 20%, this is very unusual, to say the least.
As I said, I bought 30 shares at $11.65 and it continued up and closed at $11.87

So in this portfolio of just 3 stocks I have 225 shares of AG at a cost of $10.68 on average.
I am raising my stop loss to $10.68. This means if I stick dilligently to my plan, I now can not lose here, at this point have made $267 just on this single series of trades.

My hope is a slow steady rise in price, no big jumps or drops, and I will add 10% at intervals. I hope it does not drop below my stop loss.

This is averaging up, the ideal situation.

It is the opposite of what likely will catch most in a dropping market, when they average down, by buying more, to lower their average buying cost.

You must do exactly the opposite to what most people do , it being human nature.

 

[Declan]

AG again up, 22c. It is overextended here and would need the metals to continue up.

So I instead focused on HL and bought 40 shares on the pullback, or at least what I hope to be just a pullback. Got them at 5.33. The earlier 100 was at 5.38
That leaves me with with 140 shares at 5.37. This is small and is just a play on silver rising. I likely will not add much.

My focus will be on AG and KGC and adding it they continue up.

My potion positions are at a slight profit.

Soon we will explore the opposite to buying options, which is to sell options.

 

[Declan]

AG again up, 22c. It is overextended here and would need the metals to continue up.

So I instead focused on HL and bought 40 shares on the pullback, or at least what I hope to be just a pullback. Got them at 5.33. The earlier 100 was at 5.38
That leaves me with with 140 shares at 5.37. This is small and is just a play on silver rising. I likely will not add much.

My focus will be on AG and KGC and adding it they continue up.

And just like that , HL is up 12% today on good earnings.

I own a lot of this stock elsewhere from years ago.

But I am not a huge fan either as they made some bad decisions.

But here it is pure maths and I likely will add some more going forward.

 

[Declan]

And they continue higher. So I am more aggressive than I should and added another 35 shares at $11.71.

This is chased it as it will pull back. But we have an unusual situation with Russia.

So now my position is 260 shares at an average cost of $10.82.

Going forward with this plan and if it works. I would be adding 10% with each new buy for a while now.

 

[Declan]

Anyone that bought stocks today is crazy. Buying the dip has worked for 30 years but that is the past. I expect the slide to resume tomorrow.

 

[Declan]

I do not own a single share but someone mentioned the huge company Freeport McMoRan. It is up TEN TIMES since the low of March 2020.
I am kicking myself.

 

[Anderson]

Silver looks like a wise investment at this time Dan, I am desperately trying to get into Russian stocks now they are at an all-time low.

The gamble is that Russian stocks rebound in the near future, but I have my suspicions that an imminent deal with the Chinese is about to happen and the rebound will be quicker than anyone thought.

My difficulty is trying to find a trading house that will allow me to purchase Russian stocks, I may have to go directly with a Russian trading house.

 

[Declan]

It does. And for that reason you have prompted me to add 140 more shares of AG at $12.01.
More than I should as it is a big % of what I had. Not 10%.

Anyway. My figures are changed significantly now.
My average buy price is $11.24.
I must hope the earning coming soon, will be better than expected.

 

[Declan]

I should have waited.

 

[Declan]

AG dropped and then came back so just before the close, I got another 100 shares. This has me with 500 shares at an average price of $11.40.

It is now or never.
With oil going up, the focus will increase to alternative green sources like solar.
Roll on baby.

 

[Declan]

Added a 100 shares at $12.13.
My average cost is now $11.52.

I would like to own 10000 shares of AG.

 

[Declan]

First Majestic Silver Corp. (AG) Stock Price, News, Quote & History - Yahoo Finance

Find the latest First Majestic Silver Corp. (AG) stock quote, history, news and other vital information to help you with your stock trading and investing.

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Nice close at $12.51 , basically a dollar higher than my average cost of my 600 shares. Earnings are coming up so I am a bit hesitant to add but maybe tomorrow if it is up. 10% or 60 shares.

It is dangerous because we could get a dramatic pullback.

 

[Declan]

We are seeing what may be the start to an explosive rise in the silver price with prices up 1.65 an ounce as we speak. We could easily see a squeeze and the paper markets collapsing altogether.

 

[Declan]

Bought another 400 shares of AG to bring me to a 1000 share. Paid $13.23, and it has dropped 10c immediately after, as seems to happen nearly every time..

I am undeterred and confident, the shares are lagging the physical price that has ran up so fast.
This brings my average cost to 12.20 a share.

I will buy more if it goes above 14 dollars tomorrow and will sit on it if not.