Date: Sat, 29 May 2004 11:57:13 CST
From: "TooTall" 
Newsgroups: misc.invest.financial-plan
Subject: Re:  How do I know if I will make any money selling?
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	HWrSf6D5YTBLmX4G20XYUwZO/+sQzj/2ayej3zY2C5G30/Uyhtr5CQ==
	=MVfn

It is strictly up to you depending on what your goal is.  You can set a
goal, say sell after you have made equivalent of 20% annual return or more
depending on what you want.   ($114 x .20 = $136.80.)  When to sell is the
toughest decision, no doubt.  As long as we are making money, we hate to
sell.  I really good approach is to buy the stock, then immediately sell a
covered call on the stock.  This also takes the sell decision out of your
hand for the most part because if you hit the strike price, it's sold and
you made your goal.  And it easier to make your goal because you are get a
premium for selling the option.  Another thing is to study the charts on the
stock and use moving averages to determine buy and sell points.  With stocks
you have a lot of choice and the only fee you pay is the cost to buy and
sell.


"jm"  wrote in message
news:c67e4bdd.0404211535.71bc2e7c@posting.google.com...
> I know this is probably a basic math question, but I am contemplating
> going with this place that has seven dollar trades.
>
> I guess that's okay.
>
> Anyway, If I pay $100 for a set of shares and then pay $7 for the
> trade fee, then I have paid $107.  How much do my shares have to go up
> before it makes sense to sell, because I have to pay $7 again, when I
> sell.
>
> I am thinking it depends on how many shares and/or how much it goes
> up.  What is the rule of thumb here?  Or am I just supposed to sit on
> it for twenty years?
> Or am I supposed to be "trader" and not an "investor."
>
> Thank you.
>