Long-Term Investing

My First Penny Stock Trading Success!

I made my first money “day trading” stocks. This wasn’t really a day trade, it took 3 1/2 weeks, but still feels fantastic!

Bought 1,000 shares of UNB.V on March 28 for 48 cents a share – on a friendly tip, of all things. Sold it all today for 65 cents a share.

Total investment (incl. broker fees): $490.95
Net profit (incl. broker fees): $149.10
Percentage gain: 30.42%!!!

Of course I wish I had invested a lot more, like – ten times more, but that’s how you get burned speculating. I’m happy with the little gain that I got and not going to dwell on “what might’ve been”. Look on the bright side: at least it’s not a loss, and somewhat offsets my YHOO mistake.

I’m thoroughly hooked! Almost feels illegal: such quick and easy money.

3 1/2 weeks seems like a long time, and the stock had dropped drastically a few times in this short period, but I wasn’t worried about it because the amount at stake was so little. I’m not sure I’d be as cool about it if a lot more was invested. What does hurt a bit is that it really could’ve been a day-trade. The stock opened at 50 cents this morning.

I’ve updated our current stock portfolio, and looking forward to posting more successes 🙂 I’m also not giving up on this particular company, as they say “the fundamentals are good” so I wouldn’t even mind holding it through a temporary dip.

And I broke my $1,000 penny stock limit. To be fair, I invested nearly $3,000 into a company that is not really a penny stock, but it’s a junior company nonetheless. Our total Canadian stock holdings are over $4,000 now, with US just above $2,000.

I’m now reading A Beginner’s Guide To Day Trading Online 2nd Edition. Some really good, to the point and no-nonsense advice, great for beginners. I’m learning a lot, but then I’m starting from ‘zero’. And I still don’t get how to short stocks (haven’t gotten to that chapter yet).