Busy Year

I have been with Scottrade for almost six years. They are no frills, but they are cheap, charging only $7 for any kind of trade that I would make. Generally I don’t trade that much, keeping just a handful of stocks, maybe buying something when it seems like a good company is down. Then I follow my 20% rule where I sell when I make a 20% gain, or buy more of a stock when a stock I own goes down by 20%. In 2005 and in 2007 I made only one trade the entire year. I felt bad that Scottrade was making no money off of me, but one of their selling points is they don’t have fees for inactive trading. Other years were busier. In 2006 I made 4 trades, in 2004 9 trades, and 2003 was a big year with 11 trades. But 2008 was crazy. I made 45 trades as it seemed like there were a lot of good companies with low stock prices and I was able to buy and sell as stock prices went on roller coaster rides. Goldman Sachs was one of those: I bought it for $62 on Nov. 13, entered a limit order for my 20% gain price of $75.94 which it hit less than 2 weeks later. I then entered a buy order for the same old price of $62, which it hit Dec. 2. On Dec. 8 it triggered a sell for another 20% gain. That was 4 trades. Things haven’t been moving as much lately so maybe 2009 will be another slow year. I certainly won’t feel sorry for Scottrade after giving them $7 so many times in 2008.

One thought on “Busy Year

  1. I have been very happy with TradeKing and their $5 trades. They have good customer services and a nice web site. They’ll probably give us money or trades if you create an account with them. 😉

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