Trading Account:
New stock picks this week:
Stocks bought or added to portfolio this week:
none
Stocks dropped from portfolio this week:
none
Existing & new holdings:
| Symbol |
Qty |
Last |
Gain($) |
Gain(%) |
| V |
10 |
85.28 |
7.80 |
0.92 |
Contribution this week: $0
Current capital exposure:
-2.59% 
New positions available to open: 1
Starting account value = $2,050.49
Account value = $2,035.22 (without margin)
Buying power = $5,930.10
Portfolio Gain/loss this week = -0.74%
Portfolio Gain/Loss for FEBRUARY 2010 = -0.10%
Portfolio Gain/loss for 2010 = -19.62%
Annual Return (CAGR): -27.10%
The stock market didn’t sustain its correction recovery and it seems to be continuing in its downtrend. At least the last week trading didn’t show any momentum or strength needed for further growth. That means I am staying most likely aside, waiting and considering the market in correction. This is why I changed the status from “Rally attempt” back to “Correction”.
Because of the continuing correction, I was thinking about withdrawing money from the account and relocating into a savings account, which will earn better interest than my broker’s account. I do not have much to say about the market and my trading account except that I will be waiting for some strength in the market before I buy new positions. However, before buying I still have to wait for the existing position to show gain or very little loss. If the market will go side way I was thinking to buy an ETF paying monthly dividend, such as Alpine Total Dynamic Dividend F (AOD), to park my money in it. But I was thinking that it would take about 4 months to offset the commissions and if the market goes down I may see some loss on top of the commissions, which will force me to keep the ETF for longer time (maybe waiting for its recovery and dividend gain). I do not know yet, which direction I will go. I will be thinking about this before I make a decision.
ROTH IRA Account:
New stock picks this week:
Bought 7.052 SICNX @ 7.09
Existing & new holdings:
| Symbol |
Qty |
Last |
Gain($) |
Gain(%) |
Div.
Y(%) |
Port.
(%) |
| AIGYX |
83.472 |
12.44 |
38.40 |
3.84 |
7.89 |
32 |
| ATIPX |
106.395 |
8.98 |
15.25 |
1.62 |
7.28 |
30 |
| HISIX |
26.918 |
6.86 |
-15.34 |
-7.67 |
4.56 |
6 |
| SICNX |
41.062 |
7.02 |
-11.74 |
-3.91 |
4.97 |
9 |
| SWDSX |
40.856 |
11.70 |
23.84 |
5.25 |
4.00 |
15 |
| SWLSX |
29.814 |
9.76 |
22.06 |
8.20 |
1.63 |
9 |
| Symbol |
Qty |
Last |
Gain($) |
Gain(%) |
Div.
Y(%) |
Portfolio
(%) |
| IGD |
29.0 |
12.45 |
4.35 |
1.22 |
12.06 |
100 |
| Symbol |
Qty |
Last |
Gain($) |
Gain(%) |
Div.
Y(%) |
Portfolio
(%) |
| Account target and current allocation |
| Individual stocks |
0 |
42% |
0% |
| NTF Mutual funds |
3,235.73 |
38% |
86% |
| ETFs |
361.05 |
20% |
10% |
Contribution this week: $50
Starting account value = $3,724.98
Account value = $3,750.42
Dividends received in 2010 = $19.12
Portfolio dividends yield 2010 = 0.51%
Dividends received lifetime = $103.24
Portfolio Gain/loss this week = 0.68%
Portfolio Gain/Loss for FEBRUARY 2010 = 2.46%
Portfolio Gain/loss for 2010 = 0.26%
Annual Return (CAGR): -5.77%
Portfolio Return since inception: -17.12%
Today I filed my taxes and realized I would have about $2,500 tax refund, which I haven’t expected, since I have increased my number of dependents and I was expecting no refund or very little. But thanks my mortgage payments I received a lot of credits and have such refund. I will invest $2,000 and use $500 to pay down some of my credit cards debt.
Based on my investing rules I can open a new position in individual stocks or ETFs if the position size can be min. $2,000. There fore I will open a new position in ETF paying monthly dividends. It will be Alpine Total Dynamic Dividend F (AOD). Current dividend yield is 17.06% and it is paid monthly. This will be my first step towards accomplishing my target allocation of my ROTH IRA portfolio. All dividends will be reinvested. I still am saving for Northern Global Fixed Income (NOIFX) and Alpine Dynamic Dividend (ADVDX) mutual funds which are my last funds to be added into the portfolio and then I will be accumulating only.
After I save $30,000 in mutual funds I will sell $16,000 and buy individual stocks or ETFs, while continuing accumulating in the mutual funds back to $30k amount.
So far I have accumulated $3,235.73 in mutual funds (10.97%). The further allocation plan is investing into max. 20 positions of individual stocks - 7 positions of high yield monthly dividends paying ETFs (5 or 6 riskier positions and 1 or 2 in index ETFs) and 13 positions of individual dividend paying stocks. After the number of positions is filled as well as percentage allocation, I will continue accumulating into the same, existing stocks and ETFs, however still based on the rule of minimum trade amount of $2,000 to keep my trading costs as low as possible. However, before I will have enough accumulated in my account to start buying my stocks and ETFs positions I still need to learn more about investing into dividend paying stocks.
After one or more of my stock positions reach min. 500 shares in each position, I plan on trading options (write calls only) to boost my revenues. I practiced writing calls a bit in my paper trading account, so I know a bit about options trading. However, before this happens, once again I will be learning more about it.
Are you interested in Reverse Scale Strategy and see how it works when implemented to even a small account?
