Stock Log post #1 - Down Day

The objective of this series of posts is to write out lessons I've learned on positions I have and trades I've made. Hopefully you'll be able to learn from them too.

My overall Strategy - make enough trades to earn approximately $50 every other week.

POT.TO -  Potash Corp
WJA.A - West Jet
TS.B - Toronto Star

accidentally bought SMA. TO


7/25/2013
BUY WJA.A @ 20.55
7/31/2013
SOLD @21.35

I bought WJA. A because it was on a pull back from a high. Approximately 40-45% pull back. It had sound earnings and it also paid a dividend to wait. This for me was definitely a buy. Hindsight, after I decide to sell its usually on emotions and not on the technicals.

Good: Entered on a technical low with good fundamentals. In line with current goal.
Bad: Exited too soon, on  fear of loss of profit.  Could probably hold a bit longer. My re-entry will be about 20.75. Stocks also have a tendency to go up right after I sell them. could it be that I am just impatient?

Neutral - In line with current goal.
Future: Hold till technicals line up.
Re-entry - yes- 20.75 is the Re-Entry point

7/30/2013
BUY POT.TO 32.75
7/31/2013
HOLD@ 31.12

I bought this on a sharp pull back due to "news". The stock fell way below its support line. I should have waited a few days after the drop, I could have gotten a better trade.

Good: These entries usually post quick rebounds. Technical setups lined up, which are also in line with the charts. On paper a good buy, all news aside. It also pays a dividend of 0.21 per share and was just paid this month. This would naturally have a 0.35 decline in share price.

Bad: next time, wait a few days after a steep drop to let the market settle before buying.

Future: still holding. considering adding to add to the position. approximately 30.75-31.2


7/30/2013
BUY TS.B
7/31/2013
HOLD: TS.B

Bought this on a stock screener and bought it on a technical basis where the price is along the bottom trendline.The stock also pays a dividend which is why I bought it also. Further review of the chart, looks like someone did a huge dump of the shares.

Good: Technical setup is okay, could have waited longer.  Used the weekly chart to base my decision. Should have focused on the daily to find a better entry point.

Bad: bought it on a whim, should have analyzed the charts better. Also bought it before earnings. Do not buy before earnings. Stock has also been going down for the past 3 years without any trend.

Future. looking for an exit.

lesson : study my setups for a few days and don't buy on impulse.