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Archive for January, 2020

Posted by Martin January 31, 2020

Is investing in 20-25 stocks really the best form of diversification?

Yes. You can be well diversified even with less stocks. Owning hundreds of stocks will not protect you against systemic risk. If there is a recession and panic, everybody sells everything, then it really doesn’t matter how many stocks you own. And if you want to be protected against a failure of one stocks vs. Continue reading →

Posted by Martin January 24, 2020

As we approach 2020, are you bullish or bearish on U.S. stocks for dividend growth investors?

Definitely bullish. I expect this market to go a lot higher. However, there will be corrections on the way up. By “a lot higher” I am referring to the secular bull market which in my opinion will last for the next 15 to 18 years and delivers substantial gains. However, it will not be a Continue reading →

Posted by Martin January 19, 2020

2019 trading and investing results and 2020 goal

It took me a lot of time to kick myself into writing this report. I wanted to be regular in doing so, but it was hard lately. I was busy at work, and also busy at studying trading qand investing. Although I have 14 years experience in investing in stocks and 10 years in trading Continue reading →

Posted by Martin January 18, 2020

AGNC – Time to say goodbye

I have been invested in AGNC since 2008 and I liked this company. But it is time to depart from this investment as it no longer meets my requirements for dividend investing. I wish, it was. But it isn’t. At first, the company looked great. They started increasing dividend every year, although the very first Continue reading →

Posted by Martin January 16, 2020

How can I invest in stocks? My income is $2,000 and I left with $400 after all my spending

If $400 is money you can invest, then you have more than 45% of Americans. The best strategy would be, in my opinion, to invest in high quality dividend stocks – dividend aristocrats. Here is a list of all high quality dividend stocks – champions (aristocrats), challengers, and contenders, Dividend Growth Stocks CCC list go Continue reading →

Posted by Martin January 15, 2020

Is there a sure-fire dividend stock to invest in for an uneducated investor?

No, there is no sure-fire stock for uneducated, unless uneducated are OK to lose money. Educate yourself first before you commit your hard earned money. Or, would you be OK to go to a doctor to get a brain surgery and be OK with just uneducated but sure fire doctor? What makes you think people Continue reading →

Posted by Martin January 14, 2020

What is the best way to enter stock trading with a limited budget for beginners in 2020?

Are you referring to “stock trading” or “stock investing”? Because there is a huge difference between the two. If you really mean “trading” then unfortunately you I have bad news for you. You won’t get rich quick. You won’t be able to trade successfully in a small account. You may have some success but long Continue reading →

Posted by Martin January 13, 2020

Do you prefer trading options over stocks even though options are riskier?

Options are not riskier, in fact, they are safer than stocks. Here is an example: Trader A buys 100 shares of a stock ABC for $30 a share. Trader B sells a put contract of underlying ABC with 26 strike and collects 0.31 credit. Stock drops to $24 a share. Trader A is sitting at Continue reading →

Posted by Martin January 12, 2020

Going into 2020, is there too much optimism in the stock market?

In fact, there is not too much optimism despite markets moving higher. Too many people are sitting aside expecting a crash, too many investors are pulling money out of the market (check equity funds outflows), too many pundits are speculating and competing in predictions who would nail the coming crash and recession. All this is Continue reading →

Posted by Martin January 11, 2020

How do I select good trend stocks?

Well, you don’t (sort of). No one can predict what the future would look like. And past performance… you know that cliche. So, it is not about whether the stock is good trend stock or not but about the quality of underlying business. If you know the company you know what to expect. So, although Continue reading →