- He bought the stock on 12/7 and spent $5102 (he had a budget of $5,525).
- He sold the stock on 1/13 at $6277.
- Gross profit of $1175, he has calculated a $705 net profit or an 13% return over 40 days.
His plan is to roll net profits into his next stock purchase. He will bank the taxes due into a separate account.