Well, today turned out to be better than I really expected. I have been watching the stories unfold concerning Net Neutrality and, to tell you the truth, I expected my stock to tank completely if the issue was passed.
In the past few days, I was on the fence as to whether I should have bet on Net Neutrality being squashed. Well, it passed. Along the way, I noticed that T was getting very close to my exit on last week’s trade. I mulled it over and just decided to take the money. I moved my limit down to $34.55 and ended up with $34.56. Just a little bit shy of my 1% turn on the trade, but a good gain nonetheless. My purchase was at $34.27. I paid $33,351.71 in and collected $33,619.26. Total profit was $267.55 for a .8% return in 7 days.
“A bird in the hand is worth 2 in the bush.” Has there ever been a truer statement? I may not have collected the entire 1% profit from the trade, but I also did not expect the stock to rise or continue to rise into the weekend. I did not want to see my profit evaporate and regret the decision later on. Who knows what tomorrow will bring, and having the cash ready will allow me to buy if the market goes south tomorrow.
I have to say that seeing the numbers in my account growing larger over the course of the period between dividend dates is really encouraging. Wow! That was a mouth full Also, having more shares on each followup trade is even more encouraging. In order for that to occur, I must be willing to sell. Since the trades are in an IRA, the tax issue is nonexistent. Therefore, the profit is funneled right back into more shares on the next trade.
The IRA is an amazing tool, and I am getting myself used to the idea of booking profits regardless of whether the profits are completely in line with my strategy. I am being flexible.
Flexibility is the key in this strategy. The plan is laid out and fairly easy to apply. However, the market does not care about me or any of us who are trading and investing. The market goes up and it goes down. In order for money to be made, someone has to buy and someone has to sell. It is really that simple. Sometimes I have to be a buyer and sometimes I have to be a seller if I want to try to push the limits of my returns.
I could probably just sit around and collect dividends with all my shares and eventually amass the amount of money I dream about. As a matter of fact, a very high percentage of my money does just that. However, I have a desire to try to implement my strategy to see if I can follow it and improve my income. It also performs as another possible income stream and potential wealth source.
I may not win on every trade, but as soon as I do not gain, I will be in a holding pattern and the dividends will flow. I am only trading stocks that I want to hold anyway. So, if I can increase my share count along the way, I am going to give it my best shot.
Good luck to all. Any thoughts are greatly appreciated.
Robert the DividendDreamer