Sometime this January, I realized that if I want to retire at a decent age I better get off my behind and do better with my finances. Don’t get me wrong, I think I do pretty well – I max out my 401K contribution, have no credit card debt and try to put an extra 10% on my mortgage each month. In 2006, I spent around $5,000 attending weddings and when the wedding spending subsided at the end of the year, I found that I had some extra money in my chequing account each month.
So, I started to ask my friends if they had financial consultants that I could use and much to my surprise, most of them told me that they look after things themselves. Because I have a mortgage, I don’t have heaps of cash to invest and therefore decided to try it out on my own. At the start of the year, I set up an account and transferred some cash into it. I asked several people what they were investing in and took that information and did my own research. From that, I came up with an index fund and an stock to invest in and made my initial purchases.
All this, of course, the week before the big crash in February, as posted here. The nice follow up on this, is that I am no longer in the red. So, now five and a half months later, here’s my update. I started with these two:
And recently bought this (about 6 weeks ago):
- Darling International (DAR): Up 14.25%
Luckily, I bought a lot less Starbucks than the rest – so overall I’m at a 5.02% gain. Which is better than my chequing account would do, but I’d sure like Starbucks stock to go back up. (So get out there and start drinking
coffee expensive coffee, you fools!)
My current problem is that I’m getting greedy. At this start of this, I set some rules for when I would sell my stocks – I would earn 10% (after commissions and taxes) and then get out. Well, today Darling International went above my strike price by over 15 cents and I didn’t sell. How do I fight the greed and stay on plan? And, at the risk of soliciting spam – anyone have any hot stock tips?