♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠♠
We all want to hear your opinion on the article above: 2 Comments |
We all want to hear your opinion on the article above: 2 Comments |
I often browse the internet to find ideas about investing, trading stocks, options, investing opportunities and strategies. I like to read about investors and what their investing/trading approach to create income you can live on is.
This week I found the following interesting posts:
How I Got My Kids Excited About Saving and Investing – Darwin’s Money
Stock Price Calculator for Common Stock Valuation – Free Online Financial Calculators
That’s Not What The End Of The Gold Bull Market Would Look Like – Seeking Alpha
Will A Fiscal Cliff Deal Send Gold To New Highs? – Seeking Alpha
We all want to hear your opinion on the article above: No Comments |
The market finished up today, however, as of this writing the U.S. futures point to heavy selling tomorrow morning. S&P 500 is down -23.90 / 1.66%, Nasdaq -40.00 / 1.49% and Dow -211.00 / 1.50%.
So be ready for bumpy ride tomorrow.
Another investment I am closely watching is Gold GLD. Today we experienced another sell off which could have been related to forced John Paulson’s funds selling after Morgan Stanley and Citigroup recommended its clients to sell their stake in Paulson’s funds due to bad performance in 2011 and 2012.
If this sell off continues I would follow my strategy of sequential buying into the gold position. Recently GLD reached my first buy point at $161 a share at 200 day MA. Today it progressed even lower and almost touched my other buy point at $158. My next buy point would be at $151.5 level. These levels were determined based on long term major supports.
We all want to hear your opinion on the article above: 1 Comment |
Were you also surprised finding out that the Abbott‘s dividend rate fell to 0.14 a share and started creeping what was going on? Well, today my stock spreadsheet showed up with this dividend rate and yield, see a print screen below.
I knew Abbot was going to split in January 2013, but I didn’t realize that they would announce already split dividend, so I started freaking out, what the heck was happening with our great Abbott company.
Finding some information which would make sense to me wasn’t easy. Everybody was talking a language I didn’t understand. But I found it. Abbott is going to pay a quarterly dividend of $0.14 a share and a new company AbbVie will pay the remaining $0.40 a share dividend. Both companies combined will pay $0.54 a share which is 6% increase of the dividend.
The company will split 1:1 and each shareholder gets 1/2 of Abbot and 1/2 of the new company AbbVie.
I only wonder how they want to split my 19 shares in half…
Happy Trading!
We all want to hear your opinion on the article above: 3 Comments |
Gold retreated to its 200 day MA today and I decided to add a few shares to my holding, since I consider this attractive price. I see some similarities and pattern in GLD corrections, (see the chart below) and thus I believe we are in similar pattern as in 2008.
Also I want to be buying Gold as some protection against FED and its money printing. I believe, there is more devaluation of dollar coming so as a long term investment, GLD is a good choice. Today I added a few shares (as far as my available cash allowed) and if the stock continues falling, I will be adding more shares.
12/18/2012 13:40:36 Bought 5 GLD @ 160.99
Total shares held as of today: 12
We all want to hear your opinion on the article above: No Comments |
We are heading towards the end of 2012 year and it is time to review the progress of the goals we made last year and set a new set of goals for the upcoming year.
I hope you all had a great year and that the next one will be even better.
In past years I barely set my goals publicly so this upcoming year will be my first approach to do so. In the following lines I will try to describe my goals and set the way for monitoring the progress.
Those of you who read my blog may know that I have several investing accounts with different investing purposes or strategies. I would like to review them and describe my achievements and changes I want to implement in the following year.
Investing with Lending Club was one of my greatest achievements and a great success. I was able to develop a strategy which protected me 100% from defaulting or late notes and helped me to achieve a great rate of return of 13.39%.
My 2012 goal with Lending Club:
My goal was to reach 10,000 dollars of account value and I met this goal.
My 2013 goal with Lending Club:
During 2012 I focused my savings and learning to Lending Club. In 2013 I want to focus on my TD account instead. In Lending Club account I will contribute only $220 monthly and reinvest all proceedings. I want to reach min. 14% annual rate of return. You can continue watching my progress on this page which is updated online, (well anytime I download data from my Lending Club account).
I MET THIS GOAL ON MARCH 10, 2013 ANNUAL RATE OF RETURN 14.00% |
Currently I am not planning on focusing on this account. I will continue on doing what I am doing right now and basically mirroring a strategy being used in TD account. I didn’t have any specific plan in 2012 for this account either.
I will continue contributing 3% to my 401k (which is equal to my employer’s match), monitor my holdings, and rebalance every 6 months. That is basically all I can do anyway.
This account will be my main account I will be focused on during 2013. It is a taxable account, but I still want to pay more attention to this account over my ROTH IRA. You may ask why I am preferring a taxable account over a deferred account. There are the following reasons:
That doesn’t mean I want to neglect my ROTH, not at all. I just want to focus on ROTH next time as soon as I reach my goal in TD account.
What was my achievement in 2012?
I learned a lot about trading options. I made good money, but I also lost them. I got caught in a trap every beginning investor and trader gets caught. I thought I was the king of option trading and slowly gave up all my gains.
You can see this process on the following chart. See the spike at the beginning? I started trading options with $2500 in my account and I reached almost $8000 (the very beginning isn’t reflected on the chart, since I started tracking this account later on when the account was at $4500 value).
When I was back at $2000 I realized that this wasn’t what I wanted. At that time I read a book “The Layman’s Guide To Trading Stocks” by Dave Landry (you can check his website) and I shortly communicated with Dave via emails. I described him my frustrations, his responses were funny, but he also gave away a great advice: “Stick with what you are comfortable with”.
That was the breaker. I knew it was dividend investing and that there was no quick rich method in trading. Thus I went back to the roots of investing and decided to stay with the most comfortable method = dividend growth investing.
My 2012 goal for TD account:
Honestly? I had no goal or nothing solid. Time to change it.
My 2013 goal for TD account:
The following chart shows my current income (it doesn’t have December complete as of this wiring). I will continue investing into stocks paying dividends at 3% or higher rate. The companies must have a great history of paying and raising dividends (with few exceptions in REITs). I will be purchasing only during price drops (either significant corrections or when the price retreats to support level). That’s a change in my approach. In past years I wanted to be always 100% invested. Not anymore. I want to wait for my price. When the stock reaches that price level I will use a formula (described here) to calculate my entry price. If the stock reaches that price I will buy.
I will do whatever it takes to increase my monthly dividend income to $100 a month and reinvest all proceedings. I will use leverage to boost my investments during this early phase of rebuilding my account.
I am not dashing options trading although I lost money. I understand risks of trading options, but I also see great potential options offer. In 2013 I will focus on learning basics and trading covered calls (CC) or cash secured puts (CSP). I will be selling puts or calls against my current holdings as well as buy-write covered calls strategy (buy-write CC strategy means I will be buying a stock and write a call option against it expecting the stock be called away – option exercised). I do not have 2012 track of my options trades and there were so many trades that recreating the track would be an enormous work, so no chart here. I will however track my 2013 results of option trading and post it. The goal will be reaching $100 monthly selling covered calls or cash secured puts.
The chart above shows my plan for 2013 and progress. I added December 2012 as my starting point.
Recently I realized the value of cash. In the past years I hated having cash idle in my account and I was striving being always 100% invested. Then a great opportunity arrived and I had no cash to act. Next, since using margin, I got hit by margin calls. I wanted this changed. My new strategy is contributing to the account when the holdings grow or the market is in uptrend, but leave it as cash in my account and use it as a collateral against put selling or buy-write covered calls. This strategy helped me a lot. I no longer experienced margin calls and I was able buying stocks which I wanted at better price. My goal in 2013 will be to raise cash to 30% and maintain such cash allocation (currently my cash is only around 4%).
I hope the next year 2013 will be prosperous, the United States as a country and republic will be able to steer away from socialism and communism and that we will all prosper. I like and love all of you who strive on your own to reach your goals and work hard. I like learning from you, because that is what helps me a lot reaching my own goals. Thanks for stopping by and reading.
Merry Christmas and Happy New Year!
We all want to hear your opinion on the article above: 3 Comments |
I often browse the internet to find ideas about investing, trading stocks, options, investing opportunities and strategies. I like to read about investors and what their investing/trading approach to create income you can live on is.
This week I found the following interesting posts:
Core Strategy: Dividend Investing – Investing For A Living
Recommended Book: Selling Put Options My Way – Chester the Income Investor
How I Manage My 401k – Brick By Brick Investing
Random Thoughts – Chester the Income Investor
Dividend Investors Should Focus On Stocks, Not The Market – Dividend Growth Stocks
We all want to hear your opinion on the article above: 2 Comments |
1:59 PM Abbott Laboratories declares $0.54/share quarterly dividend, 6% increase from prior dividend of $0.51. Forward yield 3.31%. For shareholders of record Feb. 15. Payable Feb. 15. Ex-div date Jan. 11. (PR)
We all want to hear your opinion on the article above: No Comments |
I hold Full Circle Capital (FULL) shares in my portfolio. As I learned today, this company belongs to a business development companies category or BDC. These companies are investing into small businesses and many of them are regulated investment companies RICs. That means that this type of companies are required to pay at least 90% of their profit back to their investors. Due to the nature of their business these companies are very cyclical and sensitive to economic situation of the country.
Sometimes ago I purchased FULL and now I am holding 128 shares of this company. What I like is that this company pays nice dividends (12% yield) and it pays monthly. However, I wasn’t sure how to evaluate such company to decide whether it is worth buying, holding or selling it.
Recently I found a great article on Seeking Alpha which helped me to understand this stock better and evaluate it better. What I have read convinced me to continue holding this stock amid the recent turbulent trading, which scared me a bit.
As you can see, the recent drop in price was scary and I couldn’t find the reason for such sell off. Was this sell off a good opportunity to buy or should I dump the stock? After reading about the stock, that its book value is around $8.5 and the stock is trading at lower $7 level I realized that this can be actually a good opportunity to buy more shares.
What happened and why the stock dropped? I think the reason could be the recent public offering of new shares which were offered at $7.50 per share. The stock immediately corrected to that price.
Will this drop have a motion momentum and continue falling? If so, I will be adding another 100 shares of this stock into my portfolio. Thus I placed a trigger order (or contingency order) to buy if the stock falls at $7.00 per share or below.
Another reason for buying more shares is that today John E. Stuart a CEO of the company purchased 2,000 shares of the company, see here.
If the stock doesn’t drop at $7 a share or below I will not be buying.
Happy Trading!
We all want to hear your opinion on the article above: No Comments |
Recent Comments