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Thursday, February 21, 2008

Investment Series - The Importance of Dividends

Challenge Accounts:

Investing Account Balance: $131.14

Stock / Futures Trading Balance: $594.19 - Additional Position Worth: $50.00
Online Savings Balance: $2.06

On this blog, I have talked a lot about trading. A few days ago, I switched gears, and started discussing investing a little more. In the following video, I discuss the importance of Dividends. Dividends is cash or stock paid to you, for simply owning shares of said stock. Different companies have different ways, and time periods that they pay dividends. I avoid investments on stocks that pay no dividends. But I talk more about that, in the following video:



The beautiful thing about investing? It lifts you up above the noise of the market. It lifts you above 'tick fever', and the incessant need to watch every stroke of the market. And Dividends is a constant 'payday', when your portfolio includes a basket of such stocks.

The next entry within the 'investment series' will discuss the sort of dividends that I look for ...

* * *

Investing Account Balance: $131.14
Stock / Futures Trading Balance: $594.19 - Additional Position Worth: $50.00
Online Savings Balance: $2.06

Total Trades and Investments: 1
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 1
Average Drawdown: $86.51
Accuracy Rate: N/A
Average Reward: $0.00
Risk Reward Ratio: N/A

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.

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