Sold!!!

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Update: December 30, 2015

The market has been very positive in the past few days. I have not had the opportunity to fill my T order. However, that is how it goes. The end of the year can sometimes bring the “Santa Claus” rally. I think a whole lot of the upswing has to do with Short covering and window dressing. The volume on T, as well as, GE has been quite off what has been the norm in the past few weeks or months. That makes me think that there are quite a few buyers bidding up the price, but the sellers are on the sidelines. Maybe, it might be due to sellers not wanting to book Capital Gains so close to the year’s end.  We shall soon find out.

All I know is that we are only a few days away from a new year, and regardless of whether I get my order filled, I am very happy how the past year has panned out so so far. T’s share price closed on December 30, 2014 at $34.08 and on December 31, 2014 it closed at $33.59. As far as overall return goes, T has realized a 3.98% return on the stock price excluding dividends. Adding in the $1.88 without reinvestment, T realized a 9.6% return- Not bad at all!  That return is for someone who collected and did not reinvest the dividends. The return should be a bit better if the dividends were reinvested. That seems to be a very nice return on a very under the radar stock.

I really like T as an investment, but it is its trading range that makes it such a nice stock to trade. So, I not only invest in T, but I trade the stock as much as possible in my IRA in an attempt to accumulate as many shares as possible. I am sure that I will sell before a run, but I know I have also sold before a major drop. So, things are equally likely to happen for any given trade. The one thing I do know is that a profit is a profit, and in an IRA, it becomes a whole lot easier to take that profit.

Happy holidays!

Keep cranking,

Robert the DividendDreamer

 

 

December 24th, 2015

Well, my shares of T in my trading account were sold today. It has been quite a while since I was above my purchase price in my trading account. However, I have made many good trades in the past year, and I have collected some nice dividends.

Anyhow, today saw a nice run in almost every stock. My positions in every stock I hold saw an increase. However, one thing I noticed was a relatively low volume being traded in each position. Low volume along with a nice increase in stock price leads me to believe this was not a real bullish move up. What I would have liked to see was a big move in stock price on heavy volume, but that is not what happened. In my opinion, the move up could be short lived. So, I decided to take the profits and place a new buy order.

I sold my 1191 shares of T in my trading account at $34.70. Once the sale was made, I instantly placed a buy order for 1215 shares of T at $34. I feel that T has made a big move to the upside in the past few days and I did not want to let the profits slip away.

Since the money is in an IRA, it is all mine. The trade resulted in just over $234 and a .55% gain. Although it resulted in less than my goal per trade of 1%, as far as percentages go, I made the trade so that I might be able to take advantage of any drop in the price of the stock. Afterall, the purpose of my trading account is to trade and to make money by accumulating more shares of the stock through trading and dividend reinvestments.

I made the decision to sell close to the dividend date, because, I made the decision to trade the money from the beginning. I am going to try my best to continue trading the stock and try to accumulate as many shares as I possibly can. There have been so many times when a stock has risen day after day only to lose it all back. I really want to try to mitigate some of those losses by attempting to lock in the gains and then jump back in on days when the market gets hit.

Just a few weeks back, the market was crippled in just a few days, and now, those days seem so far away. I am sure that the same thing will happen many times in the future, so I want to try to capitalize on some of those moves. There is no right or wrong in the stock market. Stocks go up and they go down- That is the nature of the beast. However, I made the decision to give it a shot at trading a certain amount of money, and parlay the proceeds as best as I possibly can.

I have my limit order in with the hopes of filling on a gap down. Regardless, the limit price is adjustable. As long as I aquire more shares on the purchase, I will end up with more shares, and as a result, I should be able to ultimately collect more dividends over time. We shall see how it goes. Hopefully, the order fills tomorrow. If not, I have almost 2 weeks before the Jan 6  xdiv date to buy shares in order to collect the dividends.

In my book, a profit is a profit, so I made the decision to sell. I know I did not get the most I could have gotten today, but that is where greed sometimes ends up ruining a trade. I made a plan, and I plan to stick to it.

Seeking Dividends
AKA — DividendDreamer

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About dividenddreamer

Doing what I can to make the best of today and the most of tomorrow.
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14 Responses to Sold!!!

  1. DivHut says:

    A lot of selling and buying in T before 2015 is up. As you stated, “…a profit is a profit,” and no one ever went broke making a profit. Dividends aside you realized a nice gain and that’s always nice. The volatility in the market these days does make it difficult to stick to a sell or buy plan for that matter. Thanks for sharing.

    • I have come to realize that sometimes it is perfectly ok to take a profit. In my trading account, I am giving it my all. As a matter of fact, I just made my full contribution to my Simple IRA for 2015 today. If T goes south tomorrow, I am buying over 1500 shares of T in that account. I have an order in for 1564 at $34.41.

  2. Something went wrong and I posted before finishing.

    My trading is essentially only in my IRA’S because of the bookkeeping issues and tax implications of an open account. Trading in an IRA requires a whole lot less “work,” and I can accept a smaller profit from each trade and still outpace the results in an open account. Each trade just rolls right back into the next without giving any of the profit to someone else.

    Happy Holidays

    Keep cranking,

    Robert the DividendDreamer
    AKA — Seeking Dividends

    Follow me on Twitter– Seeking Dividends@DividendDreamer

  3. TwoInvesting says:

    I like your method of trading in your IRA. Especially with the use of calls and puts. Taking taxes out of the equation is great! The issue with my Roth right now is that since I can only add $5,500 a year, it will take awhile for the value to get high enough to be able to sell a decent number of option’s contracts.

    • I know exactly what you are saying. I am giving it my best shot though. I have been looking at Tastytrades and Dough. I like the platform and the strategy, just trying to work up the desire to make it happen. The information at Tastytrades is very intriguing, to say the least.

      Keep cranking,

      Robert the DividendDreamer
      AKA — Seeking Dividends

      Follow me on Twitter– Seeking Dividends@DividendDreamer

      • TwoInvesting says:

        I use the dough platform quite a bit. I love its graphical layout. Makes it easier to understand and analyze. The tastytrade show is great. Amazing resource that I can’t believe is free!

        Scott

      • Yep. It certainly is a nice setup. I want to be able to utilize the techniques in some form or fashion. The most important thing that they emphasize is trading small. Hey, Did you see that it only costs 1.50 per contract and no fees. Plus, it seems that the close might be commission free if the price is below a nickel. Do you know anything about that?

      • TwoInvesting says:

        You’re right on both accounts. $1.50 per contract plus free to close if less than a nickel. If you have a TD Ameritrade account already, just sign up for the free dough account and you’ll get the cheaper commissions. (You might have to call or message them to get the better commissions activated.) The commissions are valid both in the dough interface, as well as on the main TD Ameritrade webpage or even through its (also excellent) thinkorswim platform. thinkorswim also allows papertrading, which is a great way to practice different strategies.

        I have the majority of my investments with Schwab and recently asked for better options pricing. It had been $8.95 + 75 cents per contract. They offered $1 per contract with a $5 minimum. Pretty good I say. The breakeven point (for standard Schwab pricing) is around 36 contracts, which controls a ton of shares. If I’m getting to the point of dealing with that high number of contracts, spending a few extra bucks on fees probably isn’t going to hurt me too much! Haha. For a smaller # of contracts, the dough commission structure is still obviously bettter.

        Scott

      • I used to be at TD, but moved everything when the office closed by my house. I have to open a new account and get going. Still working on the entire process of the new platform. I do like it though.

      • TwoInvesting says:

        You could always email or call your current brokerage and see if they’ll offer you anything similar. While dough only works with TD, it wouldn’t hurt to ask for lower commissions. Good luck!

      • Yeh, you are probably right. I do not know if they will move on that, but nothing is lost trying. I think I might give that a go. Either way, I am definitely going to give the Dough a try as soon as I get my funds available.

        Lately, I have been in a funk. I have basically let my business start to flounder and my 2 rentals that I was working on are just in limbo. I guess I am still having issue with losing my dad and my mom not being at her house anymore. I hate change!

      • TwoInvesting says:

        Sorry to hear you’re feeling bad, Robert. Hopefully things will start to turn around for you! You’ll have to write more about your talented daughter. You always seemed very excited in those posts for her. 🙂

      • Yes you’re right. I certainly am

      • As a matter of fact, I am extremely proud of both of my kids. I truly am a lucky guy.

        Thanks for stopping by. Keep in touch.

        Keep cranking,

        Robert the DividendDreamer

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