Friday, November 8, 2013

How to Prepare for your Concierge Call / Set-up Call for SchoolOfTrade.com


Please follow these instructions to ensure you are 100% prepared for your Concierge Set-Up call for SchoolOfTrade.com

Questions?
Call 800.381.2084 / Sales@SchoolOfTrade.com / Skype:  Megan.James12345

Monday, June 24, 2013

Dividend Investing Strategy Part 3

Well here we are folks! Part 3 of 3. Today we will be going over how to know when to cut a position and get out.

Now that we have our list, we have our positions, we have our goals... what do we do when it goes wrong and we start seeing one of the stocks (or more) begin to fail?

Remember what I said in the very first part of this series? I don't care if the stock falls, as long as the dividend stays the same or better. What I meant by that was, since I am going to be buying in some of the best places possible, and being patient to do so, I don't necessarily care that a stock is falling down and down and down. If the company doesn't adjust the dividend payout, I will keep adding and be especially happy about it since I will be getting it a bargain bin prices!

lets keep using AT&T (T) as our example. When the market fell apart in 2008, what did the dividend do in this stock? Fall like a rock? NO! It rose!



That is strength my friends. T fell from its highs at that point from above $30/share all the way down to the mid teens. That is half price with a rising dividend! ALL ABOARD! TRAIN LEAVING THE STATION! This is what you need to look for.

On the opposite end of things, if the market is falling and the dividend begins to falter as well... that is weakness. I don't want to see a dividend fall in price. If it only falls a few cents, that is fine. If it changes drastically, I want out at whatever price I can get it. As an example Avon had this a while back in November of last near and the stock AND dividend fell at the same time. I completely lose my interest at that point and bail on it.


This is exactly what you DON'T want to see. Avon (AVP) went from $.23 down to $.06. That is a HUGE drop in value of the dividend. This is when you say, "Nope. I am done." and bail on the thing ASAP.

That is how I run my dividend portfolio. Remember, fluctuations in the market happen. IT IS PART OF IT. If, however, they go bonkers like AVP did, you have to know when to cut it and move on. I hope this small guide was of use to you all! I will talk to you all later, and enjoy the rest of your trading week!


Remember folks, Trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the markets. This blog, as well as School of Trade and their affiliates are neither a solicitation nor an offer to Buy/Sell futures, stocks, FOREX, or options. The past performance of any trading system or methodology is not necessarily indicative of future results.

Monday, June 17, 2013

Dividend Investing Strategy Part 2

So, you have your stock list now and you are ready to get into some long term positions right!? Well not quite. We need to enter these positions strategically. We will never buy high or sell low in dividend investing, or any type of trading. Not unless we want to lose money!

First, now that we have our list of stocks (Just an example small list):
- T - AT&T Inc.
- WAG - Walgreen Co.
- JNJ - Johnson & Johnson
- XOM - Exxon Mobil Co.

I want to add these to a document that I can open up next quarter and check what has happened since then. The best way to do this is to open up Microsoft Word and format it something like this:

[Symbol][Name][Price][Shares][Dividend][DiviData Rank]

So the example list from above will look like this:

-T - AT&T - $31.45 - 158 ($5,000 investment) - 4.96% @ 1.80 - Above/Excellent/Excellent/Average

That way I can go back and look at it come next quarter when I get the dividend payouts and see if the stock is performing well, if the payout has maintained, etc... Keep in mind, the dividend percentage payout isn't as big of a deal as the payout amount. The percent can change quite a bit from quarter to quarter as long as the payout is equal or close it is fine. So if you see a 1% decrease in dividend yield but the stock has doubled, you are getting the same payout. (Just as an example)

Next what we want to do now that we have our compiled and completed list is find WHEN to buy the stocks we have in our hit list. This will vary WIDELY on your investing aggressiveness. I personally like to be VERY conservative when it comes to my retirement portfolio. What this means is I will be looking at weekly charts. If you are more aggressive, you might consider daily charts. The method stays the same, but because of the time difference, you will see a buy opportunity on a daily chart and on a weekly you won't even be close.

Next we will load up our ANCHOR_ALL chart:

AT&T Weekly Chart
The next part is, to be honest, quite simple. I am looking to BUY my list of stocks only at green buy zones AT or BELOW the BMT (white line in the middle currently at 32.12). I will also purchase directly at the BMT. I will not purchase anything at the buy zones when they are above the BMT. Those are far more aggressive plays. You will find that you don't get as many opportunities doing it this way, but you will be FAR better off in the long run. That is it. Really! It is a very simple entry method. Remember this isn't to get rich overnight. This is designed to amass a VERY large portfolio over a very long period of time.

The next question you will likely have is, what do I buy with? Do I put my own money in and use this as more of a 401k? Well, yes you can do that. I am a much bigger fan of using "House" money to work for me. This is a strategy called DRIP investing. What you do is every quarter you get a check from stocks you have purchased in the form of a dividend payout. You take the money you have made from this and simply re-invest it back into said stock. So, as an example, I get a check from AT&T this month for the 2nd quarter dividend payout. I initially invested $5,000 or bought up 158 shares (from the example above). That means that, on my 158 shares, I will get paid $1.80 annually or $.45 per share I own ($1.80/4 quarters). So I should get a check for about $71.10. That means that with that same amount of money, the next area I can buy is currently at 32.12 so I will be able to purchase 2 more shares at that level. The next quarter I will get (assuming I get my fill at 32.12) a payout for 160 shares and add more.

Now, this is with a smaller account of $5,000/stock. If you are starting larger than that, it will obviously increase how many you can add at the next payout. 

In Part 3 next week, I will talk about how to know when to cut and run from a stock.

Remember folks, Trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the markets. This blog, as well as School of Trade and their affiliates are neither a solicitation nor an offer to Buy/Sell futures, stocks, FOREX, or options. The past performance of any trading system or methodology is not necessarily indicative of future results.