Situation: you have money, you know which stock you wanna buy, and you wanna buy IT RIGHT NOW ! So you waiting for first second of the opened market and you buying, you don’t wanna miss single second of the opened market . THIS IS WRONG!!!

Why? In first few minutes market fluctuating hard, it’s very VERY volatile!!! When is market opened, all news from the time period, when was market closes must right now adjust the price, so the price going up and down hard.

If you investing, like me right now, your long-term money, you wanna some good day price, you don’t wanna buy at the "crazy" high peak of the day .

My solution? I ignored first 10 minutes, when is the market almost unpredictable and VERY volatile, and I ignored next 20 minutes after it too… For example, If market opened at 9:00, i bought at the 9:30.

But look at this graph (FIO broker, BAACEZ stock, two days 13. and 14. 5. 2009):

Red arrows pointing to the 10:00 hour, when market stop fluctuating hard.

The market ISN’T very volatile only in first 10 minutes, it’s volatile in WHOLE FIRST HOUR!

Next time, I will not ignore only first 30 minutes, but whole first hour! This is my conclusion for the good timing to enter the volatile market.

What about invest each month half of my month income to the best czech dividend , plus some "wild horse" with excellent P/E, stocks ?

BAACEZ 845 CZK, 6% dividends 50 CZK (not stable dividends, but czech government, the majority investor, pushing dividends up in this crisis)

BAATELEC price 443 CZK, 11% dividends 50 CZK (very stable dividends)

BAAPEGAS superb P/E around 2 – 3

Will I be rich after a year ? sure not, but I will be happy, good motivated (that I not ate whole my income, or buy some garbage from it) and I will have a decent year income from the dividends at least, so stocks price fluctuating will be less interesting for me, if the dividends politics of companies will stay same… The dividends will buy at least some ham, milk and bread for me .

Facts:

In the Czech republic are three stock markets. The big one SPAD (minimal buy in M€, market makers), small KOBOS (called also BCPP, I will use name KOBOS) (tenth of SPAD, real auctions) and the little one RMS (hundredth of SPAD , real auctions too ).

The SPAD have Round-Trip commission around 0,2% , KOBOS 0,8% and RMS 1,2% (really huge commissions for KOBOS and RMS isn’t it , nothing for intra-day trading…).

Opening time:

SPAD 9:15 – 16:0

KOBOS 9:10 – 15:55

RMS   9:00 – 17:00

Price depending mainly on the biggest one SPAD market. I’m waiting for the opening of SPAD at 9:15, next +-15 minutes price fluctuating VERY HARD! and at the 9:30 I’m starting buying. But If you are really smart and you know, where will price go, you may trade in RMS or KOBOS before opening of SPAD or after it’s SPAD closed, but I’m not recommended it.

The FIO broker buy/sell screen look like (It’s real screen from the today):

Biggest market SPAD set price of the BAATELEC (O2, telecommunication) stock on the 442 CZK. I’m not investing in M€, I may buy only in the KOBOS (second column) or in the RMS (third column) market. RMS have the biggest commission, but he offering lower price 437,1 than the KOBOSs 441 this is +- 4 CZK difference, which is 1% of the price. RMS commission cost 0,4% more than the KOBOS, but with this nice 1% bonus, its 0,6% cheaper, than the KOBOS with price 441 CZK. Every this calculation I’m making only in my mind, because It’s no time to use calculator or made mistake, price fluctuating hard and fast… Done I’m buying in the RMS for the 437,1 CZK .

Today I will start invest again. I choosed to invest half of the my last month income.

But I like do it the fun way, to have good feel from it. I need to feel good, because if I feel good, I’m making more money in my business… And more money is good .

What I did?

I analyzed Czech Republic stock market and choosed stocks according to this criterions:

1) Company must be from the Czech Republic (pure SPAD stock, no UNIVIC)

Pure SPAD stocks:

ČEZ a.s.

Unipetrol a.s.

Telefonica O2 CR

Komerční Banka a.s.

Philip Morris ČR a.s.

+ one my "wild horse" PEGAS NONWOVENS SA

2) Put out company, which I don’t like as the human:

Philip Morris ČR a.s. – cigarettes

Komerční Banka a.s. – bank. I don’t trust any bank, every bank leverage is +- 50:1, this is crazy…

3) I putted out stocks from the market, which I don’t understand

Unipetrol a.s. – coal company. I don’t understand precisely price relationships between oil and coal. Oil price are determined each day on the commodity stock exchange mainly in USA. I don’t monitoring it, don’t understand it right now, so I will don’t invest to this company…

4) I did technical analysis (Moving Average) and fundamental analysis (P/E, annual turnover)

ČEZ a.s. – good P/E, good dividends, strong uptrend

Telefonica O2 CR – good P/E, excellent dividends, strong uptrend

PEGAS NONWOVENS SA – excellent P/E, very strong uptrend (probably small downtrend correction)

5) And what is the funny part? Dice choosed the right stock .

This Is random part, which will choose randomly (today and in my next regular investments) to which excellent stocks I will invest. Chance is fun. I may choosed, that I will invest to the first company first month, second second… but this isn’t fun and isn’t good, because I will do steps 1-4 each month again, and next month i may have 2 companies, and other month, I may have 5 companies… So I choosed, that random choice will be the best one…

I sorted stock according to the annual turnover.

1- ČEZ a.s.

2 – Telefonica O2 CR

3 – PEGAS NONWOVENS SA

4 – 6 I will repeat throw

How it end ?

Dice choosed 2. I will invest today after 75 minutes to O2 .