Limit Sell: Sold out TCK.B!

12 Apr

This morning, I checked my stocks at Yahoo Finance App on my smartphone in bed.  Oh goodie, everything seems to be in the green, snooze…

I wasn’t alert enough to realize that TCK.B was on a steady climb heading upwards to my limit sell at $36.50.  By the time I got out of bed, it was too late to change my limit sell to a higher number for more profits!  I ended up realizing a profit of $631.15.  I could have made $200 more if I had changed my limit sell to $37.00!  Again, another missed opportunity!  But I am happy with my no emotion trade.  I had too much money riding on this stock along with a hefty margin side, I needed to sell this stock in a short amount of time.

Behind the Trade
March 23rd-  Bought 200 shares @ $35.29
March 28th-  Averaged down 200 shares @ $34.48
April 12th-  Sold 400 shares @ $36.50 (Sell Limit)
Length of Time-  13 trading days
Margin Used- $6,512.35 ($13.01 interest)
Profit:  $631.15-$13.01= $618.14

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3 Responses to “Limit Sell: Sold out TCK.B!”

  1. Alex April 12, 2012 at 2.33 #

    how does the margin interest work? do you pay them after the trade is closed, or is it daily interest charged? never bought on margin myself haha =p congrats tho!

  2. Chris Neighbors April 12, 2012 at 2.33 #

    A profit is a win! I understand why you would be upset about the $200 but it’s hard to pick the peak.

  3. agentfang April 12, 2012 at 2.33 #

    Interest is calculated daily once you have bought a stock with a margin balance. The interest rate will be charged to your account until you sell your stock. They will be charged to your account on a monthly basis. For example: I held TCK.B at $6512.35 X 4.25% for 20 days being held. The interest I paid was $13.01.

    Margin gives you the ability to borrow up to 100% or more based on your current portfolio. At Questrade, I believe I have buying power of 200%. But you have to be careful not to over extend yourself on margin. If you borrow too much and if your stock tanks after buying it, you might get a margin call which can lead to losses.

    Margin rates are usually more attractive than line of credit. Margin rates at Questrade is Prime + 1.5%(4.5%) vs line of credit at ING Direct Prime + 4.75%(7.75%.).

    If I didn’t average down with margin, I’d still be stuck with a measly gain of $242 if I decided to sell today.

    Thanks, $200 is a lot to me. I always seem to end up with the short ended stick! Don’t you always hate it when you sell, the stock just keeps on climbing?

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