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Tuesday, August 17, 2010

Drawing a Line in the Sand

As I have mentioned on August 10th, I am liquidating my other personal accounts, and will soon be investing and trading the "Challenge Project" accounts full time. In the interim, as I mentioned, I have a few stocks out there. They've been silently DRIP accumulating more shares. At other times, they've paid me straight cash.

I still have some Frontline Ltd (FRO) left. So how do I take the money on the last of it? I draw a line in the sand ...

Frontline Ltd (FRO) - Daily Chart
(Can be Enlarged):

$28.59. That's where I would consider dumping out of this last little bit of Frontline Ltd (FRO). But as I described in the entry in which I discussed exiting positions? I will adjust this 'line in the sand' upwards as I continue to gain with Frontline Ltd (FRO) and make more money. This is known as 'trailing your stop' if you are new.

Let's continue to move on, and discuss other stocks I am looking to take my money on ...

DTE Energy (DTE) - Daily Chart
(Can be Enlarged):


I love this company. They provide the electricity as a utility for my home. And they know how to run a company well, as well as safely. Natural Gas, Wind farms, Nuclear power (The best run and safest nuclear plant in the country as a matter of fact), Clean coal, you name it, they own it, run it profitably, and also spend quite a bit in making sure the power is as clean as it can be. As a matter of fact, when the government had enacted various safety standards on power plants, DTE Energy was not impacted at all.

They had made the changes long before.

But, that's all besides the point. DTE Energy (DTE) has made me a fair bit of money. Unlike Frontline Ltd. (FRO), this is not a smaller position. It's easily my largest personal position, that I originally had bought in at around the $40.00 region a few years back, and have had quite a few averaged purchases since. So I'm up quite a bit, and I want to protect those profits.

We've begun to rally, and at the current time, I'll close out of this position at $45.51. That's my 'line in the sand' for DTE Energy (DTE), which I will 'trail up' as time progresses.

Let's move on to a stock that always makes me smile ...

Shipping Finance Ltd. (SFL) - Daily Chart
(Can be Enlarged):

The reason Shipping Finance Ltd (SFL) always makes me smile ... is that it cost me absolutely nothing to acquire it. It was spunoff to me as part of a stock dividend payment from owning Frontline Ltd (FRO), so I instantly had a 1,600% gain when I acquired it. I immediately turned on the DRIP for this stock, and have been reinvesting about 90% of the dividends paid in more shares of stock. In addition, I have averaged in at key points throughout the years.

At this point? I have set an alert of $18.14. as my 'line in the sand' From that point on the daily chart, we have begun to rally. As with the other stocks, I will 'trail' this stop.

There are a few other stocks I have. I will discuss them in tomorrows entry ...

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 14 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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