Where are the weekly updates?

There is a good reason I've been quiet as of late...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I lost track of how many times friends have brought up that they know they need to put money away for retirement but they don't want to get into all the math and research.

A reboot of the Model Portfolio will add a lot of benefit for another reason I do not think I was clear about in the video. The three sub accounts of the new Effort Parity Portfolio can be independent strategies on their own. If you want to only put in the minimal time but still want good returns there is something for you here. If you are interested in stock picking I'll continue to have updates and thoughts about that. If you want something in between, a combination of all three or want to ignore the other sub accounts then that works too.

These will be fantasy demo funds. For these three I will NOT be putting my own real money into them.

Lastly, and this is highly important to me, I will be leaving up all the old videos and blog posts. I hate when people try to cover up their past mistakes. ERF will be there for everyone to see no matter when you start following me. I find its also important because as viewers and readers, you really should know what the person was doing in the past. How do we react to news and events. How do we recover from mistakes. How to we gain experience and grow.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 86 Update

No video for this week as I have a lot going on right now. Its always this way for me and the holidays.
It does however offer a good opportunity to comment on being a trader and investor.

There is a mental shift that will come when we eventually are able to quit our day jobs and go full time managing our own income.  While I am not at that point I do spend my day talking and emailing with those that are at that point to get an idea what is in store. We will no longer have to be working 8 hours a day and the time needed to be set aside for supporting ourselves financially drops. Considerably.

Some of that can already be seen with the Model Portfolio. My income stock are working great giving a steady stream of dividends. I do not have to keep a close eye on all of them.  The trading account is building up to get ready to take on trades. I have enough in there now to start doing option selling with $22.50 priced stock and WHZ currently and almost enough for TCAP. But there is no rush for every day offers a potential trade. Stress on the word potential. Some of the traders out there like Aileron will take a trade a week or every other week. That doesnt take a whole lot of time during your work week. What else is there to be done? Enjoying life plain and simple. Thats what I am striving for.



Weekly Activity
$100 deposit into Trading
$1.59 dividend from JNK


Model Portfolio Totals

Trading Account: $2,253.83
1 SPY 135 JAN PUT: $98 (-$269)
 Purchased @ 3.67
Cash: $2,155.83

Investing Account: $4,726.54
Estimated Monthly Income: $19.90 ($0.600 from DRIP)
Stock
     ABT: $0.77 ($0.018 from DRIP)
     AFL: $0.68 ($0.015 from DRIP)
     MCD: $0.70
     STX: $2.42 ($0.042 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.80 ($0.035 from DRIP)
     ERF: $0.92 ($0.082 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.062 from DRIP)
BDCs
     TCAP: $2.37 ($0.100 from DRIP)
Bonds
     JNK: $1.76 ($0.160 from DRIP)
     PCY: $1.19 ($0.073 from DRIP)
Maneuvering Cash: $1,091.10

Savings Account: $2,175.20
Emergency Fund: $1,000
General/Car Fund: $825.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Intelligent Investor Part 4

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Quite a long video but the last two chapters were absolute gold. So much utility in there for us as retail investors.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 85 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

A little bit different type of a weekly update. Not as stuffy, at least I hope it came across that way.


Weekly Activity
$100 deposit into Trading


Model Portfolio Totals

Trading Account: $2,161.83
1 SPY 135 JAN PUT: $106 (-$261)
 Purchased @ 3.67
Cash: $2,055.83

Investing Account: $4,732.21
Estimated Monthly Income: $19.89 ($0.591 from DRIP)
Stock
     ABT: $0.77 ($0.018 from DRIP)
     AFL: $0.68 ($0.015 from DRIP)
     MCD: $0.70
     STX: $2.42 ($0.042 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.80 ($0.035 from DRIP)
     ERF: $0.92 ($0.082 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.062 from DRIP)
BDCs
     TCAP: $2.37 ($0.100 from DRIP)
Bonds
     JNK: $1.75 ($0.150 from DRIP)
     PCY: $1.19 ($0.073 from DRIP)
Maneuvering Cash: $1,091.10

Savings Account: $2,175.20
Emergency Fund: $1,000
General/Car Fund: $825.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Anti dividend debates

This happens for more often then it should....

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

If dividends are so bad for investors and companies or do not mean anything then why do 402 of the 500 companies in the S&P500, reflecting the 500 biggest most successful companies in the U.S, pay a dividend? If you want to question my intelligence and investing experience by asking what makes me think I can do better then the CEO with corporation's money then you are also questioning 80.4% of the top CEOs in the U.S.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 84 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Trading
$9.13 distribution from WHZ
$6.03 dividend from STX
$1.13 dividend from PCY
$2.02 dividend from AFL
$2.37 dividend from COP
$0.37 interest from Investing account
STX raised dividend 19%
TCAP raised dividend 2% (12% raise Y/Y)


Model Portfolio Totals

Trading Account: $2,077.83
1 SPY 135 JAN PUT: $122 (-$245)
 Purchased @ 3.67
Cash: $1,955.83

Investing Account: $4,732.21
Estimated Monthly Income: $19.89 ($0.591 from DRIP)
Stock
     ABT: $0.77 ($0.018 from DRIP)
     AFL: $0.67 ($0.015 from DRIP)
     MCD: $0.70
     STX: $2.42 ($0.042 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.80 ($0.035 from DRIP)
     ERF: $0.92 ($0.082 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.062 from DRIP)
BDCs
     TCAP: $2.37 ($0.100 from DRIP)
Bonds
     JNK: $1.75 ($0.150 from DRIP)
     PCY: $1.19 ($0.073 from DRIP)
Maneuvering Cash: $1,091.10

Savings Account: $2,175.20
Emergency Fund: $1,000
General/Car Fund: $825.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Intelligent Investor review part 3

Delayed but not forgotten...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 83 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Investing
$0.92 from ERF


Model Portfolio Totals

Trading Account: $2,002.83
1 SPY 135 JAN PUT: $147 (-$220)
Purchased @ 3.67
Cash: $1,855.83

Investing Account: $4,713.09
Estimated Monthly Income: $19.42 ($0.539 from DRIP)
Stock
     ABT: $0.77 ($0.018 from DRIP)
     AFL: $0.67 ($0.010 from DRIP)
     MCD: $0.70
     STX: $2.01 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.92 ($0.082 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.057 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.74 ($0.150 from DRIP)
     PCY: $1.18 ($0.068 from DRIP)
Maneuvering Cash: $1,081.60

Savings Account: $2,175.20
Emergency Fund: $1,000
General/Car Fund: $825.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 82 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I am sure that this will  not be the final format of how I show my numbers for the trading account. Its job won't really be to generate steady income that I can count on monthly for my bills. It can however generate faster profits then the Investing account that I can then move over to the investing account to buy more stable dividend and income generating assets. Any ideas that you guys have?



Weekly Activity
$100 deposit into Investing
$2.30 from ABT
$1.59 from JNK


Model Portfolio Totals

Trading Account: $2,181.83
1 SPY 135 JAN PUT: $326 (-$41)
Purchased @ 3.67
Cash: $1,855.83

Investing Account: $4,533.50
Estimated Monthly Income: $19.42 ($0.533 from DRIP)
Stock
     ABT: $0.77 ($0.018 from DRIP)
     AFL: $0.67 ($0.010 from DRIP)
     MCD: $0.70
     STX: $2.01 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.92 ($0.076 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.057 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.74 ($0.150 from DRIP)
     PCY: $1.18 ($0.068 from DRIP)
Maneuvering Cash: $981.60

Savings Account: $2,175.20
Emergency Fund: $1,000
General/Car Fund: $825.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Preparing the Model Portfolio for the Fiscal Cliff

Now that we've discussed what the Fiscal Cliff is what changes, if any, do I need to make for the Model Portfolio...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

There is something else that the SPY Put option brings to the account beyond the economic reasons I mention in the video. Peace of mind. While I do not think it will happen, we can have a complete meltdown and I will come out ahead.
We can have a rise in the markets and my share price will rise so I will come out ahead.
Combined with the Investing account's dividends of bringing in income... Its as close to as win-win as you can get.

This mentality is what I think retail investors really needs to get down to doing. Getting away from the buy low sell high as their entire strategy.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

The Fiscal Cliff

What is the Fiscal cliff that everyone keeps talking about?

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

So there is my take on the Fiscal Cliff. Its a double whammy of two big problems at the same time. As I mention in the video, we as a society and a government haven't picked which one we want to fix yet let alone how we are going to fix things. I'm not sure if we will decide before things worsen. We only have a couple months. I don't expect an immediate drop off or crash like 2008. However between that and both Europe and China struggling its could all add up to a financial struggle at best.

Next I will talk about my own actions in planning around this and some things that we as retail investors and traders can do. I never liked that attitude of sitting around waiting for someone else to fix a problem when we can do it ourselves.



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

The Market Bottom is in

I'm calling the bottom of the pullback right here guys. We are going up as of now. How do I know?
This morning I bought 1, 135 SPY JAN Put option. I got filled this morning @ 3.67.

All joking aside, I do have some concerns about the market going forward. I'll have a couple videos coming out discussing the Fiscal Cliff (tonight) and how I am going to be reacting to it (video out tomorrow). In the meantime though I have spent $370 out of the trading account ($367 for the option plus $3 for commissions). SPY is an ETF covering the S&P500 which will measure the general market movements. This is to protect the Investing Account as a whole, not a particular position. More on this tomorrow...

With investing I get filled in on Tuesday and my expectations to hold are for months or years. With trading though it is a much quicker time frame so I wanted to get this trade out in real time and not wait a couple days to make it look like I cherry picked data or to avoid talking about losses. I REALLY hate when others do that.




Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

My social manifesto

Manifesto: a written public declaration of the intentions, motives, or views of the issuer, be it an individual, group, political party or government

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I've seen a growing problem online. Times are tough for government, families, companies, and individuals. Lots of emotion out there at what went wrong and who is to blame. To a certain extent that is fine IF, and that is a big IF, one can then get a clear head and move on to making change in their life.

A struggle comes up though in moving on to the fixing part vs the dwelling on the problem.

To some I apologize for being silent and watching those ideas go unchecked without giving a dissenting voice to. I'm still going to be giving the weekly updates and moving forward, leading by example with my own actions. I think that is far more effective then sitting back and only talking.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 81 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Savings
$1.59 from JNK


Model Portfolio Totals

Trading Account: 2,225.78

Investing Account: $4,537.32
Estimated Monthly Income: $19.41 ($0.523 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.67 ($0.010 from DRIP)
     MCD: $0.70
     STX: $2.01 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.92 ($0.076 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.057 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.74 ($0.150 from DRIP)
     PCY: $1.18 ($0.068 from DRIP)
Maneuvering Cash: $881.60

Savings Account: $2,175.20
Emergency Fund: $1,000
General/Car Fund: $825.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Selling Options

I think I made it through with not switching around terms and how options work as far as selling vs buying and calls vs puts.

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

As my closing comment stated, options can get really complicated. Perhaps more so then the average person  will be able to manage. But its something I feel should be learned and explored because they are a tool that we can use for the right job at the right time.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Why would you want to buy stock options

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Continuing my option series where here I talk about my thoughts on buying options. They have lots of uses and there are many more scenarios then I discuss here.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 80 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Trading
$1.33 from PCY


Model Portfolio Totals

Trading Account: 2,325.78

Investing Account: $4,607.65
Estimated Monthly Income: $19.40 ($0.513 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.67 ($0.010 from DRIP)
     MCD: $0.70
     STX: $2.01 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.072 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.057 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.74 ($0.140 from DRIP)
     PCY: $1.18 ($0.068 from DRIP)
Maneuvering Cash: $881.60

Savings Account: $2,075.20
Emergency Fund: $1,000
General/Car Fund: $725.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

What makes up the valuation of a stock option

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Stock options give a lot of versatility in how they can be used but they can be complex in how they work. They do have lots of moving parts to keep straight and to keep in mind when deciding to use them or not. That might bring one to question if the average person, the Theoretical Family, can use them or not.
If a family is looking to replace their income with investing and trading then they HAVE to learn and explore their "options" available to them (pun intended). Without learning what is available they cannot expect to make the best decisions for their portfolio and their livelihood.



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Halloween Financial Horror

A humorous break from the dividend investing talk...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I learned an important lesson from this. Diversification of income and assets. At that time I only had my 401k, much like many good little citizens doing what they have been advised by Wall Street. That shock that it could have been gone was enough for me to realize that I needed multiple accounts and multiple ways for providing for my future.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 79 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Dividend investing takes time but patience is rewarded. Look back to the first couple months and what was I saying. Don't get disheartened by the low income now its about the future. Things will build upon itself. Just one and a half years later and we can see the beginning of the growth. The fourth and first quarters is when the dividend raises take place. MCD and AFL already gave theirs. ABT has theirs with the split. The Model Portfolio got in front of these and we will see the yield on cost start to rise.


Weekly Activity
$100 deposit into Trading
$8.57 dividend from AGNC
$0.91 dividend from ERF
AFL raised dividend 6%


Model Portfolio Totals

Trading Account: 2,225.78

Investing Account: $4,611.68
Estimated Monthly Income: $19.39 ($0.508 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.67 ($0.010 from DRIP)
     MCD: $0.70
     STX: $2.01 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.92 ($0.076 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.057 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.74 ($0.140 from DRIP)
     PCY: $1.18 ($0.064 from DRIP)
Maneuvering Cash: $1,022.61

Savings Account: $2,075.20
Emergency Fund: $1,000
General/Car Fund: $725.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 78 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Investing
Purchased 8.6851 shares of STX


Model Portfolio Totals

Trading Account: 2,125.78

Investing Account: $4,649.32
Estimated Monthly Income: $19.35 ($0.504 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.64 ($0.010 from DRIP)
     MCD: $0.70
     STX: $2.01 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.072 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.057 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.74 ($0.140 from DRIP)
     PCY: $1.18 ($0.064 from DRIP)
Maneuvering Cash: $1,022.61

Savings Account: $2,075.20
Emergency Fund: $1,000
General/Car Fund: $725.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

What are Stock Options?

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Before anyone starts jumping in with "You forgot about X"... this is a VERY BASIC overview of stock options. I wanted to just go over them conceptually to start things off with.

Now this is not to say I will be jumping into them with the trading account. A big part of why I want to go over them is that stock options are very common and can be very appealing. The Theoretical Family has had 1.5 years to educate themselves and read up on things about the markets. Options should be an option... pun intended.



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 77 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Trading
$1.16 dividend from O
$1.56 dividend from JNK


Model Portfolio Totals

Trading Account: 2,125.78

Investing Account: $4,551.26
Estimated Monthly Income: $18.42 ($0.504 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.64 ($0.010 from DRIP)
     MCD: $0.70
     STX: $1.08 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.072 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.16 ($0.057 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.74 ($0.140 from DRIP)
     PCY: $1.18 ($0.064 from DRIP)
Maneuvering Cash: $1,022.61

Savings Account: $2,075.20
Emergency Fund: $1,000
General/Car Fund: $725.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 76 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

The $0.50 interest payment from cash in the investing account should have been listed last week. The savings account I have not added in interest in as the money is in a savings account with my credit union.... which apparently is not paying a yield of note. I'm going to have to get that transferred to the Sharebuilder savings account this month. Just wanted to bring that up as that number not changing is not due to me missing it.



Weekly Activity
$100 deposit into Savings
Bought 2.73 shares of MCD
$0.50 interest from cash position in Investing account.


Model Portfolio Totals

Trading Account: 2,025.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $20.25
Portfolio stop (3% account): $60.75

Investing Account: $4,603.22
Estimated Monthly Income: $18.41 ($0.490 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.64 ($0.010 from DRIP)
     MCD: $0.70
     STX: $1.08 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.072 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.15 ($0.053 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.73 ($0.131 from DRIP)
     PCY: $1.18 ($0.064 from DRIP)
Maneuvering Cash: $1,022.61

Savings Account: $2,075.20
Emergency Fund: $1,000
General/Car Fund: $725.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250




Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

McDonald's (MCD)

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I mentioned that the dividend has grown quite well over the past 5 years since the Great Recession started but their dividend raises go beyond that. 35 straight years they have raised dividends that's quite an achievement considering all the other investing and trading fads out there that come and go.

I made the video a few days ago and am posting it now. Since that time McDonald's has filed paperwork to start selling bagged coffee. Their McCafe line of specialty coffee drinks now accounts for 6% of their sales. As I mention in the video, they got rich from a dining experience more so then by selling hamburgers. The success of the McCafe line shows us that they can adapt and win at changing tastes and new trends.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Dreams and Goals part 2

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I want to make it clear how critical it is to not get stuck dreaming especially when it comes to finance. We are mortal beings. We have even less time for our working years where we are old enough for a job yet not old enough to be too frail. Add in the years where we don't care about debt and then more years to pay it off and you do not have much time left. We do not have time to waste idly.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 75 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Investing
$0.92 dividend from ERF
$6.83 dividend from TCAP



Model Portfolio Totals

Trading Account: 2,025.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $20.25
Portfolio stop (3% account): $60.75

Investing Account: $4,575.53
Estimated Monthly Income: $17.71 ($0.490 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.64 ($0.010 from DRIP)
     STX: $1.08 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.072 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.15 ($0.053 from DRIP)
BDCs
     TCAP: $2.32 ($0.098 from DRIP)
Bonds
     JNK: $1.73 ($0.131 from DRIP)
     PCY: $1.18 ($0.064 from DRIP)
Maneuvering Cash: $1,272.11

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

American Capital Agency Corp (AGNC)

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

With as how complex AGNC is I just knew I was going to miss some things and it turns out its an important one.

American Capital Agency Corp focuses mostly on improving the book value. Thats a higher priority then making the most money they can. This is a big benefit to shareholders because every time they have an SPO and sell more shares it runs the risk that existing shareholders will see dilution in their value if AGNC cannot find better deals then they have in the past. If they can increase the book value which is a per share basis then everyone benefits not just new investors.

AGNC is very good at this having raised the book value 11 of the past 12 quarters. Keep in mind, that is through a couple interest rate cuts. With Bernake targeted QE3 to buying mortgages then the existing mortgages will start increasing in value because there is buying pressure and AGNC might be able to offload some of their own mortgages for a profit. At the least they can claim the value is higher of their existing ones.

If AGNC declaring all their mortgages are a higher value because of QE3 sounds fishy its probably because it is. I wouldn't think they increase in value I just care about the actual payments coming in from the people wanting to pay off their mortgage. But I can benefit from the rise. A high book value will increase the share price. The higher that gets then whenever it has its big 33%-50% drop will have it settle higher then without QE3.

I might sell if it gets high enough. Normally with dividend investing I will not do that because the dividend is increasing year over year and the company is increasing year over year. With 90% of my investments that is the case. AGNC is different and I have to think differently with it. We KNOW for a 100% fact that it will drop at some point by a lot. That's not an opinion or calling a top. AGNC themselves is saying this.

If we know how to deal with and plan for a setback then is it a setback? I'm keeping the dividend to buy more after the big drop to dollar cost average in with its own profits. If it gets high enough I'll sell and keep the money to rebuy in after the drop.



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 74 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Investing
$1.15 dividend from O
Purchased 6.8521 shares of AGNC


Model Portfolio Totals

Trading Account: 2,025.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $20.25
Portfolio stop (3% account): $60.75

Investing Account: $4,490.07
Estimated Monthly Income: $17.65 ($0.434 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.64 ($0.010 from DRIP)
     STX: $1.08 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.068 from DRIP)
     WHZ: $3.68
REITs
     AGNC: $2.86
     O: $1.15 ($0.053 from DRIP)
BDCs
     TCAP: $2.28 ($0.051 from DRIP)
Bonds
     JNK: $1.73 ($0.131 from DRIP)
     PCY: $1.17 ($0.059 from DRIP)
Maneuvering Cash: $1,172.11

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Internet Marketing

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

So yes this topic comes up enough that I felt I needed to make an entry. There are lots of internet marketers out there who seem confused at what I am doing. Why are you on the internet if not to make money?!?!

I have to say though what really ticks me off is when some amateur internet marketer with a garbage site, who doesn't know what they are doing, and failing at their goal wants to comment that I am not doing what I am not even trying to do (generate ad revenue).




Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I
am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 73 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Trading
$1.56 dividend from JNK


Model Portfolio Totals

Trading Account: 2,025.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $20.25
Portfolio stop (3% account): $60.75

Investing Account: $4,402.42
Estimated Monthly Income: $14.75 ($0.428 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.64 ($0.010 from DRIP)
     STX: $1.08 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.068 from DRIP)
     WHZ: $3.68
REITs
     O: $1.11 ($0.047 from DRIP)
BDCs
     TCAP: $2.28 ($0.051 from DRIP)
Bonds
     JNK: $1.73 ($0.131 from DRIP)
     PCY: $1.17 ($0.059 from DRIP)
Maneuvering Cash: $1,323.11

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 72 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Trading
$1.89 dividend from AFL
$1.76 dividend from WMT
$2.34 dividend from COP
$0.35 dividend from PSX


Model Portfolio Totals

Trading Account: $1,925.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $19.25
Portfolio stop (3% account): $58.77

Investing Account: $4,382.49
Estimated Monthly Income: $14.74 ($0.419 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.64 ($0.010 from DRIP)
     STX: $1.08 ($0.010 from DRIP)
     WMT: $0.59 ($0.014 from DRIP)
Energy
     COP: $0.79 ($0.025 from DRIP)
     ERF: $0.91 ($0.068 from DRIP)
     WHZ: $3.68
REITs
     O: $1.11 ($0.047 from DRIP)
BDCs
     TCAP: $2.28 ($0.051 from DRIP)
Bonds
     JNK: $1.72 ($0.121 from DRIP)
     PCY: $1.17 ($0.059 from DRIP)
Maneuvering Cash: $1,321.76

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250




Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Merger and Acquisitions

The Theoretical Family has to deal with their first M&A...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Should the average person invest in Royalty Land Trusts

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Investing and Trading are like any skill set to make a living. You have to put the time in to improve your skill. Learning, practicing, doing, etc. I think this is where the vast majority of traders and investors will get themselves into trouble. Not the actual investments they make with their money but the lack of investing in themselves.

Its easy to start investing and trading. Just open up an account, deposit some money in, and then start clicking the buy button. Sooner or later a big mistake happens but the blame often is not with what they bought but how and why they bought it. As I mention in the video, use the proper tool the way its intended.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 71 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Investing
$3.22 dividend from STX
$1.12 dividend from PCY
$0.58 interest from Cash in Investing account
6.4% dividend raise for TCAP over previous quarter's dividend


Model Portfolio Totals

Trading Account: $1,825.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $17.25
Portfolio stop (3% account): $51.75

Investing Account: $4,330.61
Estimated Monthly Income: $14.73 ($0.402 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.63 ($0.005 from DRIP)
     STX: $1.08 ($0.010 from DRIP)
     WMT: $0.59 ($0.011 from DRIP)
Energy
     COP: $0.78 ($0.016 from DRIP)
     ERF: $0.91 ($0.068 from DRIP)
     WHZ: $3.68
REITs
     O: $1.11 ($0.047 from DRIP)
BDCs
     TCAP: $2.28 ($0.051 from DRIP)
Bonds
     JNK: $1.72 ($0.121 from DRIP)
     PCY: $1.17 ($0.055 from DRIP)
Maneuvering Cash: $1,321.76

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Whiting USA Trust 2 (WHZ)

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Hopefully this clarifies more on why I invested in Whiting USA Trust 2.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 70 Update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Believe it or not, the crazy day trader thumbnail was my best option that Youtube was offering.


Model Portfolio Totals

Trading Account: $1,825.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $17.25
Portfolio stop (3% account): $51.75

Investing Account: $4,253.25
Estimated Monthly Income: $11.06 ($0.385 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.63 ($0.005 from DRIP)
     STX: $1.07
     WMT: $0.59 ($0.011 from DRIP)
Energy
     COP: $0.78 ($0.016 from DRIP)
     ERF: $0.91 ($0.068 from DRIP)
     PSX: $0.12
REITs
     O: $1.11 ($0.047 from DRIP)
BDCs
     TCAP: $2.19 ($0.049 from DRIP)
Bonds
     JNK: $1.72 ($0.121 from DRIP)
     PCY: $1.17 ($0.055 from DRIP)
Maneuvering Cash: $1,401.26

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 69 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Savings
$2.29 dividend from ABT
$1.11 dividend from O
+3.4% dividend raise from O


Model Portfolio Totals

Trading Account: $1,825.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $17.25
Portfolio stop (3% account): $51.75

Investing Account: $4,181.78
Estimated Monthly Income: $11.06 ($0.381 from DRIP)
Stock
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.63 ($0.005 from DRIP)
     STX: $1.07
     WMT: $0.59 ($0.011 from DRIP)
Energy
     COP: $0.78 ($0.016 from DRIP)
     ERF: $0.90 ($0.064 from DRIP)
     PSX: $0.12
REITs
     O: $1.11 ($0.047 from DRIP)
BDCs
     TCAP: $2.19 ($0.049 from DRIP)
Bonds
     JNK: $1.72 ($0.121 from DRIP)
     PCY: $1.17 ($0.055 from DRIP)
Maneuvering Cash: $1,300.82

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Networking and Financial contacts

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

This is an overlooked aspect of retail investing and trading. People enjoy sitting back and watching videos or skimming through a blog especially watching a progression blog like mine where you follow along the progress being made. I enjoy them too. However in watching what someone is doing its easy to miss out on why.

Shadowing is another problem. A big one that deserves another mention today. Way too many people buy what someone else bought blindly and Warren Buffett is the most shadowed. He started self made and grew into the biggest and best investor of our time so why not do what he does you are starting off too right? That's what he used to do but what is he doing now? He bought company X so I will too. But he bought 2-3 months ago and he bought preferred shares of stock yielding 7% that he negotiated a special price directly from the company. You just bought the common stock off the open market at maybe 50% higher price then his equivalent. In the end you aren't even buying the same thing that he is.

Recently I have been reading The Reformed Broker. I find Josh to be funny, entertaining, and insightful. Yes he has a book to sell that he brings up, who wouldn't on their blog. He does offer some ideas on process.

Passive observation is useful but active communication is even better.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 68 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Trading
$1.60 dividend from JNK


Model Portfolio Totals

Trading Account: $1,825.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $17.25
Portfolio stop (3% account): $51.75

Investing Account: $4,139.6
Estimated Monthly Income: $11.05 ($0.371 from DRIP)
Stock
     ABT: $0.76 ($0.006 from DRIP)
     AFL: $0.63 ($0.005 from DRIP)
     STX: $1.07
     WMT: $0.59 ($0.011 from DRIP)
Energy
     COP: $0.78 ($0.016 from DRIP)
     ERF: $0.90 ($0.064 from DRIP)
     PSX: $0.12
REITs
     O: $1.11 ($0.043 from DRIP)
BDCs
     TCAP: $2.19 ($0.049 from DRIP)
Bonds
     JNK: $1.72 ($0.121 from DRIP)
     PCY: $1.17 ($0.055 from DRIP)
Maneuvering Cash: $1,300.82

Savings Account: $1,875.20
Emergency Fund: $1,000
General/Car Fund: $525.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Skeleton Model Forex

My forex experiment for August is....

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

The big advantage is that its easy and simple. Not a lot of time is spent on over analyzing a currency pair, let alone a dozen, looking for a good trade.... guilty as charged on that count.

Is it me or is my voice in the video have a lot of echo in it more then usual?

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

What is Cost Basis for Investing?

Last week I was in an interesting discussion about cost basis for dividend investors. How does one calculate cost basis?  You might as well ask what the best ice cream flavor is as it comes down to personal preference.
Now to be clear before I continue... the IRS has a very specific way of calculating cost basis for tax purposes. The following is not about that as you have to follow their definition. This is purely about how do you want to think about your money. How do you define your success...

Quite a bit of theory and math coming up or jump to the bolded section for the short version...

First let's look at a purchase of stock and the total dollar amount generated without terms of cost basis and % returns.
1.0: Buy $10 stock that pays no dividend. Price rises to $20. Total amount: $20
2.0: Buy $10 stock that pays $1 dividend and keep it as cash. Price rises to $20. Total amount: $21
3.0: Buy $10 stock that pays $1 dividend and DRIP an extra 0.1 shares at the same price. 1.1 shares rise to $20 share price. Total amount: $22
Assuming the stock price moved as described then #3 seems to be the clear best choice as it generates the most money. How is it then measured as far as profit and % gain?

If you bought a $10 stock and then one day later you were paid a special $10 dividend the stock would essentially be free to you. You have all your money original money back. The share price could drop to $0 and you wouldn't have lost anything. From this point of view we would actually want to reduce our cost basis by the dividend paid out. Using the same examples as above...
1.1: $10 original purchase goes to $20: 100% return
2.1: $10 original purchase, $1 dividend drops your original at risk money to $9 then goes to $20 for $11 profit: 122% return
3.1: $10 original purchase, $1 dividend drops your original at risk money to $9, you DRIP 0.1 shares, your 1.1 shares rise to $20 for $22 total position and $13 profit: 144% return
This makes sense because that $1 dividend is in your pocket and independent of share price fluctuations so it could be taken out of the equation.

We can look at DRIP shares in another way. That they are a new purchase of stock. That you have the $1 dividend in your pocket and decide to make a new purchase placing more of your money at risk.
1.2: No change: 100% return
2.2: No change: 122% return
3.2: $10 original purchase, $1 dividend drops your original at risk money to $9, you DRIP 0.1 shares raising your at risk money back to $10, your 1.1 shares rise to $20 for $22 total position and $12 profit: 120% return.
From this are we to say that starting with $10 and ending with $21 is more profitable than starting with $10 and ending with $22 because that is what the % profit tells us.
If you feel dizzy or confused here don't worry because...

Stock brokers calculate profit and cost basis differently too
Sharebuilder calculates cost basis that a dividend does not reduce cost basis and DRIP shares increases it.
Fidelity calculates cost basis that a dividend reduces your cost basis and DRIP does not increase it.
I have active accounts with both and turn DRIP on and off at different times for different stock. Its amazing how much more profitable I feel with Fidelity.

% returns and measure of gains are nothing more then a "feel good stat" most often used to figure out who the better investor is between different strategies and different positions. There is utility with how you set your own cost basis and use it to measure yourself to yourself. Was investment choice A better then your investment choice B. I feel it is important to measure yourself to find areas to improve upon so we do need some sort of cost basis to % return metric.

For the Model Portfolio I am using my original purchase as the cost basis. How much of my original money out of my pocket am I risking.
Dividends taken as cash I will use to reduce my cost basis.  This money is out of the market and will not be impacted by share price changes. It is the same as if I never had that money in the market in the first place.
Dividend taken as DRIP I will reduce my cost basis as I took it in cash then put my money from my own pocket back into the market at risk to price fluctuations. Essentially make DRIP investments an even wash.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 67 update

No video for this week's investing and forex trading update as I am still having computer problems from the lightning strike. Parts are ordered and should be delivered this week. $150 for overnight shipping or $10 for 3 day.... I think the update is ok with no video for $140.

The deposit this week is going to the investing account. This will finish replacing the funds that were used for the STX purchase. I'll be wanting high amounts of cash until things settle down in the world. Europe is still an issue. I have concerns with China being a 1 party system and finding reliable information with them.

Everyone seems to love China. Its the growth place to be and if you aren't invested in China then you aren't a real investor! The problem with investing in China is its hard to find reliable information. So Chinese companies release poor results and stocks go down. The logical action of course is to block some of that information from the public! Its that mentality that keeps me away from China directly. But I do have some Chinese exposure through my large international dividend companies. I'll let them do the work, research, and growth planning. Then I'll get the reward when their stock goes up. Seems like a pretty good deal to me.

Though I am not invested in China I cannot ignore them. They are the second largest economy and what happens there moves the markets. I don't think they have the growth that they say they do. If they are declining in a recession or even having slowed growth the world cannot turn to them for growth and help if Europe worsens.

Cash and Patience are my two best assets right now to see how everything unfolds. It may seem like I have been saying this forever. It could go on for several more months or years before things get sorted out. There will be a point in time though that I am willing to take on more risk. At that point I'll need all the cash I can get my hands on and thusly why I keep a high cash reserve.

For trading last week I did not place any trades. My computer problems started up Monday night and was a distraction. Insurance companies sure love to take my premium. "Oh you need a claim? Well ummm see you live with your girlfriend's house and since you aren't married then you're more like a renter so your items fall under renters insurance sorry." On top of that we had the Fed on Wednesday, Europe announcements on Thursday, and unemployment on Friday. It was the beginning of the month which is always a busy time for reports and news that can shift the forex markets. I have a backup laptop I keep on the shelf and not plugged in for this very reason of a smoked primary computer. If I was living off my portfolios I couldn't wait a week or more to put trading and investing on hold, it would be my livelihood. I'm eager to get to trading...



Weekly Activity
$100 deposit into Investing
$1.15 dividend from PCY
End of month account interest
28% dividend raise from STX


Model Portfolio Totals

Trading Account: $1,725.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $17.25
Portfolio stop (3% account): $51.75

Investing Account: $3,986.81
Estimated Monthly Income: $11.04 ($0.361 from DRIP)
Stock
     ABT: $0.76 ($0.006 from DRIP)
     AFL: $0.63 ($0.005 from DRIP)
     STX: $1.07
     WMT: $0.59 ($0.011 from DRIP)
Energy
     COP: $0.78 ($0.016 from DRIP)
     ERF: $0.90 ($0.064 from DRIP)
     PSX: $0.12
REITs
     O: $1.11 ($0.043 from DRIP)
BDCs
     TCAP: $2.19 ($0.049 from DRIP)
Bonds
     JNK: $1.71 ($0.112 from DRIP)
     PCY: $1.17 ($0.055 from DRIP)
Maneuvering Cash: $1,300.82

Savings Account: $1,875.20
Emergency Fund: $1,000
General/Car Fund: $525.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

"You've been thunderstruck!"

A great example of risk control and planning from real life that carries over to investing and trading...

There was quite a powerful thunderstorm on Monday night and my house was hit by lightning. Quite an interesting expereince to smell ozone in the air. My girlfriend was by a window and saw sparks raining down from the gutter. Nobody was hurt but we did suffer two computer casualties. Parts are on order to build new ones but no video updates for a bit I'm afraid.

I want to stress the importance of backing up your data, frequently and externally. We both have external hard drives that we leave unplugged when not actively used and on a shelf. I've seen too many people use it as an active second drive and leave it plugged in. For those that do not know... USB connections carry electricity and many devices are powered through the USB cable. Its a perfect candidate to get zapped along with your computer and defeat the purpose of backing up your data.

How does backing up your data relate to investing and trading? We have to be sure that whatever steps we take to control risk in the markets will actually control risk and not be misused. JP Morgan used their hedging department not for risk control but to make a profit and it blew up in their face. Stop losses for trading do not get moved back to keep you in a trade just a little bit longer. It defeats the purpose of it.

When bad events come up if its a lightning bolt or a crash in the markets and we have a plan and tools in place to protect us then it removes fear and worry. Are you ready for a 50% crash in the stock market? Who knows when it will happen but in the next 30 years I bet we will get at least one.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 66 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Weekly Activity
$100 deposit into Investing
$0.89 dividend from ERF


Model Portfolio Totals

Trading Account: $1,725.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $17.25
Portfolio stop (3% account): $51.75

Investing Account: $3,953.43
Estimated Monthly Income: $10.80 ($0.356 from DRIP)
Stock
     ABT: $0.76 ($0.006 from DRIP)
     AFL: $0.63 ($0.005 from DRIP)
     STX: $0.84
     WMT: $0.59 ($0.011 from DRIP)
Energy
     COP: $0.78 ($0.016 from DRIP)
     ERF: $0.90 ($0.064 from DRIP)
     PSX: $0.12
REITs
     O: $1.11 ($0.049 from DRIP)
BDCs
     TCAP: $2.19 ($0.049 from DRIP)
Bonds
     JNK: $1.71 ($0.112 from DRIP)
     PCY: $1.16 ($0.050 from DRIP)
Maneuvering Cash: $1,200.82

Savings Account: $1,875.20
Emergency Fund: $1,000
General/Car Fund: $525.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Type of Investments: 4.5 The good, bad, and the ugly of royalty land trusts

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

I easily spend the most time talking about royalty land trusts with others then any other type of business. Is it any wonder really seeing everything I have said before about royalty land trusts and now in this video.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.