2008 will be a year for good returns. I plan to scale down my investment avenues to a solid 10 stocks...5 in scottrade and 5 in usaa. Each will provide diversification and I am looking for best of breed stocks. The two portfolios will contain both stocks and options, either DITM calls or covered calls. Overextension in 2008 could again lead to a year like 2007. This is why 10 stocks only will be selected.
For Scottrade I'm looking at the following sectors: retail, healthcare, mining, tech and a bank stock.
USAA will have a similar compilation as I feel these stocks will excel in 2008. Also as I expect volatility to remain, I will go for a few softer good stocks such as Pepsi, Coke, Proctor and Gamble or Altria.
A few stocks I am looking at for 08 are the following
Healthcare, biotech: DNA, CELG, RAD, UNH, HOLX, Medco Health.
Tech: RIMM, GLW, EMC, CY, GRMN
Retail: BBY, SHLD, JWN.
Mining: ACH, FCX, LMC, AUY
Bank and Investment: WB, BAC, GS, NLY.
I also pledge to be more active and post more often as I become more settled in my house. Best of luck for 08...
Saturday, December 29, 2007
2007 year in review
2007 was for sure an up and down year in the market. High volatility and inexperience led me to a weak gain in my in first full year of active trading. As the year closes it appears I will make roughly $300, a mere 1% gain for the year. I have some ideas and approaches for 2008 which will be outlinde in the next blog. However, below are some thoughts and lessons learned from the year past.
1. Buy in increments and don't be afraid to take some money off the table when a stock has moved up.
2. Playing around with options can be a very successful way to make money. Buying and selling these in increments can lead to exceptional gains; however, pick and choose wisely...much research must be done in order to excel here.
3. Covered calls were a good approach to the solar sector. My dad had a lot of success this past year with these. 2008 could be the year for covered calls in the troubled financial sector.
4. OTM calls are no good unless they are months out. They risk/reward ratio is not good enough for an investment.
5. My 2007 spec stocks did not work well. Had I not invested in these in 2007 I probably would have had a big gain.
6. Companies that now have ridiculous looking dividends may not be a safe investment (AHM).
7. DITM calls are the safest way to invest in options.
1. Buy in increments and don't be afraid to take some money off the table when a stock has moved up.
2. Playing around with options can be a very successful way to make money. Buying and selling these in increments can lead to exceptional gains; however, pick and choose wisely...much research must be done in order to excel here.
3. Covered calls were a good approach to the solar sector. My dad had a lot of success this past year with these. 2008 could be the year for covered calls in the troubled financial sector.
4. OTM calls are no good unless they are months out. They risk/reward ratio is not good enough for an investment.
5. My 2007 spec stocks did not work well. Had I not invested in these in 2007 I probably would have had a big gain.
6. Companies that now have ridiculous looking dividends may not be a safe investment (AHM).
7. DITM calls are the safest way to invest in options.
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