Am I calculating interest rate/return on investment correctly?

I'm working on the finer points of my trading plan and I need some help with my logic. Please check my logic/calc on the below....

I purchased a stock for $50.35 and sold it 76 calendar days later for $55.98 - an increase of 11.18%.

If I'm trying to compare that to quoted interest rates of other investments, does that then translate into:
1) .15% daily (11.18 divided by 76) and thus
2) 53.69% annually (.15 times 365)
3) this investment was roughly 10 times better than what I would have received in interest on a bank account or CD.

Thanks so much for your help. I hope my question makes sense.

Your calculations are correct BUT I would caution you that stocks can be quite volatile like the example listed. It may have a huge gain but then have an even larger loss. Make sure to diversify among different stock types (i.e. international, large, mid, small caps) and bonds to minimize volatility. It will lower your rate of return but it will also increase the likelihood that you will have something in the end.

Happy investing.

Yes, your gross annualized return is 53.7%. But you also need to take into consideration transaction costs, which could substantially change your overall return. So calculate your net return after these costs, and then you'll be able to compare apples to apples. Good luck & happy investing.

stock are equity market and can volatile, the returns u are getting are as u are lucky. always plan and discipline your profit as well as loss to earn a regular income. as personally what i do in stock i exit at a profit for 9% and also exit at a loss of 3%. the upper limit is of 9% and your lower limit is of negative 3%.
whenever u invest in stocks u should be ready to take loss as sportlty as u take profit. ,mutual funds are the best instruments to invest in long run the chances of loss is very less..
regards
avinash

Once again, Marko pretty much nailed it.

Here is a more solid example of how to figure in the transaction costs.

Say you buy 100 shares at 50.35, and the broker fee is $40. You have spent 100*50.35+40=5075

You then sell for 55.98 with the same transaction cost. You earn 100*55.98-40=5558.

The transaction fee increased your cost and decreased your return.

In this example, your return is 5558-5075=503 Run the 503 through the calculations, 503/76*365/5075=0.476...= 47.6% annualized return. In this case the transaction costs have eaten 6% off your returns!
Although if you really want to get technical, your total return here was 583, and your two transaction fees were 80, representing 14% of your profit.

This is why trading often only really makes the people who charge the fees rich, and is why I am generally in the buy and hold crowd.

Other posters also mentioned this, but it is worth saying again, risk=return. You got a good return, but the stock could have gone the other way if the market had hiccuped.