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Why I am not a passive investor.

When I was browsing the internet looking for investors trading actively options and blogging about it I didn’t find many.

But I found a lot who claimed to be passive investors investing into dividend stocks, buy stocks and hold them. The only time when they sell is when they find that the stock they hold may be in danger or its dividend may be in danger. Some are lucky and sell on time, some are not lucky and end up holding the bag of worthless stocks. And some sell the stock and the stock never falls and continues thriving.

I experienced all three situations as a dividend investor.

It is completely okay to be a passive investor if it works great for you, or you do not have time or capacity to learn how you can squeeze more out of your stocks.

I am not satisfied as a passive investor.

I want more. And I am willing to spend time, effort, and money to learn more.


 · Why I am not a passive investor?


Because I believe that my money can do more if they are active, if I make them actively work for me as my employees.

However, I do invest passively and build my dividend portfolio because there will be days when I might not be able to trade anymore. I will be so old that my brain will not be capable trading.

Or I will not want to actively manage my portfolio anymore and watch my positions almost on a daily basis.

Or I will want to travel and go to places where I will not have access to my account and manage my positions.

There are many reasons why I want to build a portfolio of dividend stocks.

But that’s future.

Today, I am still relatively young and I want to maximize my potential and boost my trading and make more money than just investing into stocks and wait next 20 years to see results.

I want to spend those 20 years enjoying income from trading and yet have enough to stop trading 20 years from now.

Options can do it for you.


 · Why I am an active investor?


As a passive investor you are a dependent of the market. It is the market which forces you to ride its waves. You are a spectator here.

I have heard passive investors saying how glad they were to be passive during the recent market’s selloffs. Now we are back and they made 2%.

But it can still change. May can be a disastrous month and we may see heavy selling. My passive portfolio is still in an overall loss. With more selling, it will be even bigger loss.

In my passive dividend portfolio I have approx. $19,000 invested and that makes me around $75 dollars monthly income.

My active options trading portfolio has approx. $7,000 dollars invested (or used for trading) and it makes me approx. $400 monthly income.

Which is better?

This is why I am not a passive investor but use options strategies to actively use my money to make more money in any market. I am not a spectator anymore.

You can join our options trading group and learn how you can use your dividend stocks to boost your income beyond dividends.

6 responses to “Why I am not a passive investor.”

  1. I’ve been both an active and a passive investor. However, when i invested in the S&P index, i had a much greater return than when invested in stocks. Stats show that the S&P will outperform many investors but in that route, i do not grow and learn. Excellent points you’ve made! :)


    • Martin says:

      I am somewhat passive investor in the way that i build a passive portfolio for the time I will no longer be able to be active – mentally incapable, too old, sick, or whatever, but not the case today.

  2. I do both, DGI investing and Options trading. I use my DGI portfolio to sell covered calls. It’s a great way to supercharge returns. Last year for example, I made $7,000 selling options. It’s just one way that I can add more new money to my investment portfolio. I think the reason why many DGI investors don’t sell options is because they fall in love with the stock instead of focusing on total return.

    • Martin says:

      That’s exactly what I am talking about and why I advocate using options even in DGI portfolios. And, you are also technically lowering your cost basis. I totally agree with you on the “love” point. I have been there too and was afraid of getting my loved one called away :)

  3. amber tree says:

    This is a nice point of view that you bring to options trading. There are points I like and deep down I practice as well

    1- It is ok to actively trade now as I have the time and like it. In a few years, things might be different. Same here. That is why the plan now is to build up slowly a dividend portfolio with the cash we have sitting on the sideline.

    2- The way you highlight the returns of option trading vs dividend stock is a strong one. The potential reward for the effort and risk taking is big. To be honest, I had to start slow and had very soon a few deep in the money puts… A great learning experience

    • Martin says:

      There are good strategies how to fix ITM puts. It takes time, but it is possible. In the Facebook group I just saved a document describing how to manage ITM puts (and calls in that matter) and end the trade as a winner. But such fix is not typically an overnight solution. It will need time too.

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