Well, I just bought 1564 shares of T@$34.41 in my IRA trading account. I made my contribution to my IRA yesterday and modified my limit order from the day before, and it filled around the low of the morning.
I am really happy with the price because it was right at 1% below the sale of my last trade. In order for this strategy to work, I must be vigilant, and I must be able to accept taking profits of 1% as soon as they come to fruition. The main issue with this strategy is waiting for the settlement of the funds-There is no way around it! Basically, there is no trading into and out of positions just because the market is bouncing all over the place. So, basically the amount of trades is limited to about 1.5 per week if the stock moves in the right direction when the money is available to trade. Otherwise, I am left chasing the stock. I am going to start selling cash secured puts in order to collect cash while waiting to purchase. We will see how that works out.
At this very moment(11:05), I am up 14 cents per share. That is about $218 in profit in just about 2 hours. If I could trade in and out as much as I wanted, I would be out right now. However, thar is not how it works. If I sell now, I will have to wait 3 days for the cash to settle. In that time, the stock might rise, but it is definitely going xdiv on January 6, so I have no plans to rush this. However, I might sell the covered calls for next week. It all depends on whether the profit is in the right ball park.
Well, at the moment, I am going back to the trading account. Good luck to all.
Robert the DividendDreamer
AKA — Seeking Dividends
Follow me on Twitter– Seeking Dividends@DividendDreamer
AKA — DividendDreamer