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November 2016 trading, investing, and dividends results

 · November 2016 dividend investing results

 

If you follow our blog you may know our strategy of creating income now to be invested for income in the future.

That is why I focus on options trading as of now and keep my dividend investing on autopilot.

I want to create a stable, consistent income now, while dividend investing is an income in the future. I once said, we want to be active now, so we can be passive later in our retirement.

You can look at it from this perspective:

I have approx. $19,000 dollars invested in dividend paying stocks in my ROTH IRA account, the rest of the balance is in cash. The account brings in approx. $902 annual dividends. That is 4.75% annual income. Monthly, it is 0.42% income on invested capital.

In our trading account we have $39,000 dollars invested and that capital is bringing $2,220 in average monthly income. That is 68.31% annual income, or 5.69% monthly income.

As you can see, about the same amount of money can make me higher income now if I actively trade it, while the dividend income will kick in in about the next 20 years after all compounding and dividend increases take effect.

 
Options in my ROTH
 

My job income doesn’t allow me to contribute to ROTH more than $50 a month, my options income is great but I still cannot use it for other purpose than reinvesting, I realized that in order to grow my ROTH account I have to be able to generate income in that account too.

Even when I will be able to withdraw more money from my options trading account to be invested in dividend stocks, ROTH IRA limits annual contributions to $5,500 per year. Since I want to have a tax free growth and tax free income in retirement, the only way how I can grow my ROTH IRA account fast is to use options.

This is my reason for trading options in ROTH IRA account too.

There fore all my contributions and cash in the account is now used to trade options and I do not invest in new stock positions. I only reinvest dividends using DRIP program. Once I reach my goal on income from options inside ROTH IRA account then I will proceed investing that income into dividend stocks along with contributions.

The goal is to save $10,000 of available cash in the ROTH IRA account for options trading and invest 50% of all proceeds from the trading into dividend stocks. That means, that if I reach for example 2% monthly income on the 10,000 available cash ($200 monthly income) then every 5 months I should be able to buy dividend stock (using $1,000 per stock purchase) and grow my ROTH IRA stocks holdings again.

 
Here is the plan:

by December 2017 plan: $6,000 trading cash – IN PROGRESS ($2,430.53)
 

I decided to create three sub-accounts (created in my spreadsheet as a mental sub-accounts) with a certain purpose. Here is my plan for 2016:

 

Here is my ROTH account review:
 


Options Income
(Click to enlarge)
 

My annual dividend income increased this month from $897.49 to $902.49.

 
Dividend stocks added or removed from portfolio:


 

November 2016 dividend stock buys: none
November 2016 dividend stock sells: none

 

To purchase stocks I use trailing stock order strategy OTO trade order (one triggers other) and I described this strategy in my post about purchasing stocks in falling markets.

I also invest into dividend paying stocks using Motif investing which allows me to buy all 30 stocks I want in one purchase using fractional investing, similar to a mutual fund.

You can actually build your own mutual fund with Motif investing.

Here is my Motif Investing account you can review:
 
 

 


 
 

I continue reinvesting my dividends using DRIP program. I love how my holdings grow when reinvesting the dividends and when the stock prices are going lower. As I believe we are heading into a recession I will be able buying more shares for a lot cheaper.

 


 


 


Get up to $150 when you start trading with Motif

Are you Ready to Start Investing?

Open an account with Motif Investing, build your own mutual fund (Motif) of high quality dividend paying stocks and buy that Motif with as little as $250 per trade. If you open an account and start building your investment, you will receive $150 promo bonus which will help you to start building your retirement account. It is never too late to start at any time!

Or you can open a no fee IRA account and get $150 bonus!

Start investing with Motif Investing is easy.

Once you open an account, you build a Motif which is like a portfolio. And then you place all high quality dividend growth stocks into that portfolio (up to 30 stocks). Once you are done, you buy that portfolio for as little as $250 per trade.

Look at it as if the motif was a cardboard box into which you put all your goodies and then you grab and buy the entire box.

It works as mutual funds. When purchasing mutual funds, instead of buying all individual stocks, you buy the entire fund. Motif investing works the same way. You buy the entire motif as if it was a fund. And by doing so, you purchase all 30 stocks at once at fractional shares.

You can look at it the other way. If you like Amazon stock (AMZN) which trades at approx. $800 a share and you only have $250 dollars to invest this month, you would have to wait 4 months to buy one share!

With Motif, you place Amazon into your motif portfolio and buying the entire portfolio you buy fractions of Amazon now and enjoy the benefits of holding that stock.

I did it with shares of Visa (V) which I wanted to own when it was trading at $300 or more but never had enough money to buy such shares with a single purchase.

If you like the idea as I do, you can read my earlier post on how to build your own mutual fund with Motif investing and start building your account with as little as $250 per month.

So, do not hesitate, take action now open an account and start investing!

 


 

Dividend stocks DRIP:


 

November 2016 DRIP:

American Capital Agency Corp. (AGNC) $28.83
Realty Income Corporation (O) $10.34
Prospect Capital Corporation (PSEC) $9.14
Mastercard Incorporated (MA) $3.06
Kinder Morgan, Inc. (KMI) $5.73


 

Here are my ROTH IRA trading/investing results:


 

November 2016 dividend income: $57.10
November 2016 options income: $80.00
2016 portfolio value: $20,068.90 (-0.83%)
2016 overall dividend account result: 32.56%


 

The account decreased by -0.83% compared to the last month but overall we are up 32.56% for the year. All dividends were reinvested back to the companies which generated them.

 
Here is my dividend income:

ROTH IRA account value


 

 
Annual dividends since the beginning:

ROTH IRA account value
 

Here is the entire account value from the beginning of tracking it up to today:

ROTH IRA account value

 

Below is my dividend income review for the entire year:

Dividend Income
My ROTH IRA dividend income breakdown per month and per company.


 
 

 · All accounts

Besides trading and dividend accounts I also have 401k account, emergency savings account, etc., which I do not report in detail. You can review those accounts in my “All Accounts Value” table at the bottom of My Trades & Income page.

My accounts decreased from previous month and are making 29.55% (down -5.14% from previous month) for the year.

 


 

Remember, if you like trading options and want to have trade ideas for free, join my Facebook closed group and follow my put selling trade ideas in real time, comment, ask questions, and interact with other members. Other members of the group can also post their trades so you can learn from them too.

 
 

You can join the options trading group here

 
 

What do you think?

How about your investing or trading results?

Do you have any question? Need help to start trading or investing? Shoot me an email or let me know below in comments how I can help you.

 
 

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6 responses to “November 2016 trading, investing, and dividends results”

  1. ambertree says:

    Nice trading results and a bold move with the loan.

    • Martin says:

      Yes, I was scared at first a lot thinking what would I do if things go bad, but later created a plan how to avoid it in this case and be able to pay the loan off even if the trading on’t work well. Fortunately I am doing well (knocking on the wood) and I am able to use proceeds only to pay the loan off.
      Thanks for stopping by!!

  2. DivHut says:

    First of all, an amazing month for total passive income. You are really killing it with those premiums. Just when I think I’m getting the hang of options I learn about net-liq which just complicates things for me. This is the first time I even read about this phrase. I’m still going to watch your trades and others online and see how things unfold. I appreciate these detailed updates.

    • Martin says:

      Keith,
      thank you for your kind words and commenting. The trading really picked up nicely although I feel stretched a bit and that makes me nervous. However, I have been feeling like that since June or July, always telling myself “This time I won’t make it” and yet I could come up with nice profit. I hope and pray that it will stay like that.
      I recommend you to learn about options and try a few small trades, step by step, naked puts at first in a paper account so you learn all ins and outs before you commit real money. If you want, you can email me, we can stay in touch via emails and I can help you and navigate you. Believe me, options are exciting and profitable trading but you must know very well what you are doing. If you don’t, then it will become risky trading.

      Good luck!
      Martin

      • DivHut says:

        I appreciate your offer to help me out. Paper trading will always be the best way to go about learning but I know one thing, I would only limit myself to cash secured puts or covered calls exclusively for a while. Naked sounds too scary for me.

        • Martin says:

          Keith, you still can trade “naked” and yet have enough cash to treat the trade as cash secured. For example, when you sell a put against STX, with strike $40. Your broker will block approx. $700 options buying power, but if you keep $4,000 in reserves in case of assignment, and you get assigned, you will only pay $1200 to own the stock and you still will have $2,800 in reserves.

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