As I began monitoring the COH (every 15 minutes I was refreshing the page), I was able to confirm my theory. I was watching between the hours of 11am and 2pm. I had a goal price in mind at which I wanted to buy. This also comes from my father’s advice. First, set your goal buy price, your goal return rate, and your goal sell price. Once you sell you walk away. Don’t look back and think if I had only waited longer I could have made x amount more. Just be content with the return you did get, especially if it met your goal. Now, there is a possibility of the stock plummeting. If you’re reading articles and reports that the company is done for and the stock is reflecting that go with gut if you think there is no turning back and cut your losses.

My goal was to buy 100 shares of Coach at $40, a recent low. I wanted a 38% return. The stock has proven its able to accelerate at that rate and I wanted to push it a little further. My goal sell price is $55. So as I was watching, I was prepared to click the ‘buy’ button as soon as it hit my goal. Watching it for a few days, I noticed it kept going up. It started at $41 and in a few days was back up to $46. I was afraid I was going to miss my goal by more than just a few dollars. So as I was growing anxious, I watched it drop back to $43.35 and bought it on an impulse. But since it didn’t reach my goal, I decided not to buy all 100 shares at the same time. I bought only 50 shares. Each purchase costs a $7 fee that my online discount broker Scottrade charges. So I knew I would be hit with another $7 when I decided to purchase the remainder of my shares but it’s worth it to hold out for a better price. I also knew about the dollar cost averaging technique and knew this might actually be a better plan, buying incrementally.

So Wednesday, August 22 I became the proud owner of 50 shares. Fifty shares @ $43.35 plus the $7 commission = $2,174, total investment . I had decided on using $4,000 of my portfolio on this particular stock. I will discuss how I plan to diversity my portfolio in another post.

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