What was I Thinking?



   Today was a really nasty day because of all the rain and cold weather. I decided to hang out today and just watch the market to see if something might come my way.

     A few weeks back, I initiated a new position in T in my IRA that I trade in. In that time, the stock has stumbled a bit, but I collected the dividend and reinvested in more shares. Well, today, the stock had an early rally and shot up about 40 cents from the day before. However, the price was over 50 cents higher than I paid for the stock ($34.23). I had the limit order in for $34.80, and went about my business. I should have been a little more vigilant and just made the trade because, by the end of the day, all of the gains evaporated. I have always been of the mindset that a gain is a gain and I have always taken the money— not today.

     I guess I was greedy today, and I got spanked! That is not going to happen again. If I make my %age gain, I am taking the money and buying something else— end of story.

     It seems that, every once in a while, we need to come back to reality and realize that things do not just go one way. They fluctuate up and down. I decided a few months back to stick to my strategy, so I need to do what I set out to do.

      I am reinvesting my dividends, selling calls and trading to generate income. I must be able to see the trees as well as the forest and stick to my plans in order to see the results. Time will tell, but I am taking the money if I get another chance. Maybe tomorrow. 

We’ll see.

Keep cranking,

Robert the DividendDreamer

About dividenddreamer

Doing what I can to make the best of today and the most of tomorrow.
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12 Responses to What was I Thinking?

  1. mstcourtjester says:

    Funny, I took my gains on T yesterday and futures are up big this morning, so now I am thinking maybe I should have held longer, LOL 🙂

    • I should have cashed in on T in my trading account yesterday. The gain was well beyond my normal trigger, but I was not on the ball. Today, the price is almost a full 1% lower. I could have been back in the game and enjoying the gain and a few more shares as well as a larger dividend payment for the future.

      At least you took your gains. A gain is always good. It may not be the most or the best, but it is a positive move on the needle. They all add up, and the compounding is amazing. Good luck.

      Keep cranking,

      Robert the DividendDreamer

  2. roadmap2retire says:

    Sorry to hear that….but chalk that up as a lesson learned.

    Best wishes

  3. Don’t be so hard on yourself Robert. Look how far you’ve come. Just take it next time. Gain is a gain like you said. There’s always tomorrow. Pretend it was a day off. :). Much love my friend. Tyler.

  4. How are you performing on your day trading? Are you happy with your performance thus far? Cheers!

    • Not so much day trading. I put $12000.00 in an account and have been trading it making 1% or more per trade. I made 5 round trips and one buy trade so far and with the collected dividends, I am up right at more than $1200.00 in profits. I need to cash out the position I have now, and then I will get a total on the 6 round trips since mid November of 2014.

      We will see how it goes. Thanks for stopping by.

      Keep cranking,

      Robert the DividendDreamer

  5. DivGuy says:

    Best lessons are often learned the hard way! Keep looking at the big picture and I’m sure it isn’t that bad at all! 😉

    • I am definitely looking at the big picture. However, I sometimes forget that it is composed of endless tiny brushstrokes. I look at each dividend, each trade, and each reinvestment as a brushstroke in that painting.

      I guess I want to paint the picture as fast as possible so that I can enjoy the final product. However, it sure is fun along the way to see it taking shape, but sometimes I get anxious to see the final product.

      Thanks for stopping by.

      Keep cranking,

      Robert the DividendDreamer

  6. Just stumbled upon your blog. I will hang around a little as I am interested into covered call writing. Until today, my biggest problem was to write a call at a price I am not willing to sell… I just gave it a go… Lets see how it goes

    • I have been busy with other things and investing has been on autopilot lately. That is the beauty of it all. You can allow the dividends to reinvest and build over time without much effort.

      As far as covered calls, I usually write them after I feel the stocks have run up to the top and I can squeeze a little out in addition to the strike price which I usually set a bit higher than the current price. Lately, I do not have a bunch of calls in the works, but it sure does allow for a nice income stream along with dividends and capital gains. Good luck.

      Keep cranking,

      Robert the DividendDreamer
      AKA — Seeking Dividends

      Follow me on Twitter– Seeking Dividends@DividendDreamer

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