Trading Analysis

GSE preferred stock trading involves buying and selling preferred shares of Government-Sponsored Enterprises like Fannie Mae (FNMA) and Freddie Mac (FMCC). These preferred shares were issued before the 2008 conservatorship and trade on the OTC market. They have fixed par values and carry dividend rights that have been suspended since 2008, making them a high-conviction bet on the eventual resolution of the conservatorship.

Fannie Mae has 26 series of preferred stock and Freddie Mac has 28 series, for a total of 54 outstanding junior preferred issues. Each series has different par values, coupon rates, and trading volumes. The most liquid series tend to be the lower-par-value fixed-rate issues that trade on the OTC markets.

Transparent trading analysis means publicly disclosing every transaction — every buy, every sell, every price, and every mistake. Most investors only show their winners. Full transparency includes documenting losing trades, poor timing decisions, and the emotional mistakes that cost money.

Trading data analysis starts with exporting transaction history from your brokerage (like Schwab CSV exports), then parsing every trade into structured data. From there, you can identify patterns: which tickers you traded most, your price ranges, timing tendencies, and concentration levels.

Investors share trading records for accountability, credibility, and education. Public disclosure prevents the temptation to rewrite history or cherry-pick winners. In the investing world, anyone can claim great returns — but showing the actual transaction log is rare and valuable.

Preferred stock sits between bonds and common stock in the capital structure. Preferred shareholders receive dividends before common shareholders and have priority in liquidation, but typically do not have voting rights. Common stock represents ownership with voting rights and unlimited upside, but gets paid last.