Opportunity loss: Possible extra $3000 US dollar gains from May 15 to May 27 2020 on GE position

May 27, 2020

Introduction

It is light speed to see GE stock bounced back quickly. I did some analysis before May 15, 2020, and made purchase of 40 share at price $5.52, and I saw the price went up over 10%, so I thought that $5.52 should be bottom, so that I made another 500 shares on May 22, 2020. GE has hard time to maintain investor confidence, 28% loss from March 27, 2020 will take 28 years if interest is 1%. I like to write a short report on this position.

GE holdings

Actionable Items

I have to think better to do risk management. If GE stock had more than 28% drop from March 27, 2020, then it is less risk to invest more on May 15, 2020. I should think about investing all cash $11,000 into GE stock, so that I can catch full spread of rebounce and in short time I can benefit over 30% return in two weeks. 

I have to measure the risk, I did choose 40 shares on May 15, and then 500 shares on May 22. I think that in order to fully take advantage of low price in 30 years, it is better for me to investment $10,000 US dollars on May 15, 2020. 

Think about more and look into short term investment, how to manage risk. 

If I made purchase on May 15, 2020 with all cash I had on my Ameritrade.com, $11,000 US dollars, then in less than two week, on May 27, 2020, the return is 32.07%. The return is $3527.70.

I have to have a target to make money. In reality, my return on May 27, 2020 is $508.38, 13.13% from March 27 2020 to May 27, 2020.

More work on risk analysis

I should calculate more carefully about the risk. What if I like to make more on long term and also short term on GE stock investment. 

Here are highlights of my research:

1. Made first purchase on March 27 60 share of GE stocks;
2. Start to work on research on GE as a company; 
3. After two months, GE position had 28% loss; I did think that it is not reasonable, I need to invest more on GE stock;
4. I studied investment two criteria, invest on big companies, distressed stocks. Be a rancher, not a hunter;
5. I just randomly thought about 500 shares on March 25, after March 15 40 shares purchase; 
6. Need to learn how to take risk, I should show my confidence level on GE stock at price $5.40, 30 years low. 
7. Estimate my confidence level, and then do something else. 

Actionable Items

May 28, 2020

What I like to do is to work on GE stock research. I should try all kinds of techniques in day trading with $4000 US dollars budget. I am planning to invest long term. But I also like to document the psychology part of investment.

Three days after I bought $500 shares of GE, the stock went up first day 7%, and then second day another 7%. Now it went down the starting price. I had $500 dollars gain in less than three days. Those psyschology of gains are hard to resist.

I should be patient to play with the market up and down with GE stocks. I should sell to make gains of those 500 shares of GE,and then purchase back when price drops. The US economy will take at least 2 to 3 years to recover. GE aviation takes time to recover.