A few months back, I started to regularly trade in one of my accounts. I had some really nice trades in the early going. However, lately things have gone south a bit.
Although the trade went south, I did collect the dividend on the T shares that were being traded. That is the beauty of my strategy. I have no problem taking my gains because the stock is being held in an IRA. Also, I like the fact that if the trade goes south, I get to collect the dividends as I wait for a better sale price. Nothing is guaranteed in any strategy, however, if I buy decent companies that pay regular dividends, it will take the sting out of falling share prices.
As a matter of fact, a lower share price is rather nice sometimes because of the increase in shares being purchased by the dividends being paid. In the long run, prices tend to go up, and unless I am selling, being able to buy more shares is always a good thing.
I am one step away from selling calls on the T shares being held for trade. I have been mulling it over and looking at prices and dates for the last few weeks. There were a few really nice points of entry in the past few days, but I hesitated. I am in the frame of mind where I want to get as much cash flowing to me as possible. If I get called out, I will profit both with the stock price and the call value. With the market seeing some rather stark drops lately, cash flow seems to be king of the hill.
Also, with the inflow of cash from the calls and the cash from possibly being called out, I am sure I could find some other stocks that would be good candidates for short term trading as well as long term dividend income holds.
I have been really busy lately. Lots of issues have popped up lately. I have a rental that is having major issues and my kids have been studying for exams. I have also been doing a video for my son’s football team- So much work involved with cropping and selecting and editing. The computer is the weak link in that it can only process so fast. Too much for me to do and not enough of me to go around. So, some things have to wait.
During the last week, I have been the victim of theft and I saw a gang of kids beat up a young boy about .5 miles away from my home, and after calling the cops 3 times! —- nothing was done about it! Talk about being angry, well I was very angry because of that. The year has started out rocky for lots of people, but I hope it turns out to be less tumultuous by year’s end.
Since most of my investments are just collecting and reinvesting, I tend to do the things that are most important and update on stocks and such when time permits. Hopefully, I will be able to keep up a little more in the coming weeks.
Any thoughts would be greatly appreciated. Hope everyone is doing well in the new year.
Robert the DividendDreamer