squiffy
10-02-2005, 05:46 AM
Last year when NOK fell from 23 to 17, then from 17 to 11, I bought about 12,000 shares at an average price of 13.50 or so. And sold at about 16.50 or so. I made about 45K.
When NOK dropped to about 15 in August I bought some more, but not as much, because I wasn't sure if it would keep falling again to 11. Unfortunately, it did not keep falling but stopped at about 15.20 or so.
Anyway, I bought 1000 shares on three days 8/16, 8/24, and 8/30 15,960.99 15,660.99 and 15,510.99. For a total investment (including trading costs) of $47,132.97
On paper, as of Friday, NOK had gone back up to about 16.91 over about a month to a month and a half, for a gain of about $1.20 per share, or roughly 7.6%.
Now this is only on paper, since I haven't sold. And it could easily drop back down.
But it's amazing to see that you can sometimes make quite a nice gain, in a very short time.
A one-year CD might pay about 4.0% to 4.3% per year, at one of the top rates offered in the nation. But the average return offered by banks is closer to 2% or 3% for a one-year CD.
Yet, if you get the timing right on a stock, you can make 4-7% in one month (sometimes much more). If you could keep that up for 12 months consistently (damn near impossible) you could make 7 x 12 or 84% per year.
But again, this shows you the problem with an annualized rate.
Making say 7% in one month is like an 84% annualized rate. But it is very unlikely NOK will maintain that pace for 12 months.
Just two weeks ago it hit about 16.80, for about a 7% gain in one month. But then it dropped right back down to 16.20 or so. Easy come easy go, until you actually sell.
Anyway, the gain is about $3,417.03 on an investment of $47,132.97.
Now imagine if I were a multi-millionaire. And imagine I could have afforded to invest say $1 million in NOK at 15.71.
Well a 7% gain on $1 million is $70,000. WHich would not be bad for one month. That is as much as I make in a year of busting my ass!!!
So, to tie this in with the advice from Rich Dad, Poor Dad, that $47K investment in the stock market is like having my money work for me. While I was asleep or at work, my money was like a slave, that worked and made money for me.
All I did was study the stock, and click a few buttons on the internet. My dream is to have enough money in stocks and real estate, so that my money makes as much or more than I make.
When NOK dropped to about 15 in August I bought some more, but not as much, because I wasn't sure if it would keep falling again to 11. Unfortunately, it did not keep falling but stopped at about 15.20 or so.
Anyway, I bought 1000 shares on three days 8/16, 8/24, and 8/30 15,960.99 15,660.99 and 15,510.99. For a total investment (including trading costs) of $47,132.97
On paper, as of Friday, NOK had gone back up to about 16.91 over about a month to a month and a half, for a gain of about $1.20 per share, or roughly 7.6%.
Now this is only on paper, since I haven't sold. And it could easily drop back down.
But it's amazing to see that you can sometimes make quite a nice gain, in a very short time.
A one-year CD might pay about 4.0% to 4.3% per year, at one of the top rates offered in the nation. But the average return offered by banks is closer to 2% or 3% for a one-year CD.
Yet, if you get the timing right on a stock, you can make 4-7% in one month (sometimes much more). If you could keep that up for 12 months consistently (damn near impossible) you could make 7 x 12 or 84% per year.
But again, this shows you the problem with an annualized rate.
Making say 7% in one month is like an 84% annualized rate. But it is very unlikely NOK will maintain that pace for 12 months.
Just two weeks ago it hit about 16.80, for about a 7% gain in one month. But then it dropped right back down to 16.20 or so. Easy come easy go, until you actually sell.
Anyway, the gain is about $3,417.03 on an investment of $47,132.97.
Now imagine if I were a multi-millionaire. And imagine I could have afforded to invest say $1 million in NOK at 15.71.
Well a 7% gain on $1 million is $70,000. WHich would not be bad for one month. That is as much as I make in a year of busting my ass!!!
So, to tie this in with the advice from Rich Dad, Poor Dad, that $47K investment in the stock market is like having my money work for me. While I was asleep or at work, my money was like a slave, that worked and made money for me.
All I did was study the stock, and click a few buttons on the internet. My dream is to have enough money in stocks and real estate, so that my money makes as much or more than I make.