My Stock Trading Gains

Last week, there were series of events and the biggest of all these news was the largest bankruptcy ever filed in US. This was by Lehman Brothers, the fourth largest securities firm in US.

Another news went up and Merrill Lynch succumbed itself to Bank of America for $50 Billion to prevent collapse.

Furthermore, the largest American Insurer, American International Group (AIG), was taken over by the US government by acquiring 79.9% of the company for $85 Billion.

A lot of pessimism lingered the market during those times as investors fear of a domino effect of these happenings. In fact, this was evidenced by a falling stock market of more than 4% when Lehman filed the biggest bankruptcy in US.

This was followed by another hefty 4.5% when the news of AIG popped up the next day. And so in just two days, billions worth of stocks were swiped out of the market, leaving some stocks attractive.

I took advantage of these pessimistic news, and so I invested heavily in the stock market. I risked a huge capital from my savings, quite a few hundred thousand bucks and invested in the stock market. After the market has fallen the other day on the news of AIG, I added another few hundred thousand bucks to have additional investment.

Initially I bought SM, PX, AC, MEG, and GEO shares. And the next day, I bought another group of stocks that include MBT, BDO, JFC, MEG, BPI, AC, GEO, ALI, and SM.

I was actually monitoring Bloomberg on the news about the US stock market until the US congress announced a $700 Billion bail out plan. They were planning to buy these bad assets to cleanse the balance sheets of most Wall Street firms especially financial firms.

This news cheered the investors and posted a two-day straight uptrend in the stock market. Again, I again took adavantage of this and started selling my stocks previously acquired to cap my gains.

I prepared a stock trading history and a transaction costs worksheet to readily view my NET amounts after buying or selling by just putting the gross amount value. View the excel sheet here

Yesterday, I sold AC, BPI, JFC, MEG, BDO, MBT and some SM shares garnering a 6.08% NET income in just 2 days. Biggest gainers on a per share basis went to BDO (+9.53%), JFC (+9.46%), and MEG (+6.73%). In terms of absolute amounts, MEG's sale was the highest capping P2,925.

Today, I disposed PX and some GEO shares. PX was sold at a loss of P387 while some GEO shares were sold at a gain of P314. I am still holding ALI, GEO and SM shares.

Hopefully, the stock market will rise again soon but investors viewed the move of Paulson's $700 Million bail out as rather predatory as it may push the US budget deficit to $1 Trillion.

If you are a beginner in stock trading, you can learn how stock market works.