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Friday, February 22, 2008

Investment Series - What Sort of Dividends?

Challenge Accounts:

Investing Account Balance: $131.14

Stock / Futures Trading Balance: $594.19 - Additional Position Worth: $55.00
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.

Now mind you, I still trade. For those that follow this Daily Blog, you know that I'm in the midst of a trade with the e-mini S&P 500 Futures March contract. I didn't get the volatility I was hoping for in this trade. I'm still holding onto it for the next few days, and my profit stop remains at 3.75 ($187.50), giving me a risk / reward ratio. We'll see how the next 5 trading days unfold.

Back to investing. I was discussing the importance of dividends in the previous video. However, in the following video, I discuss a little more what I look for in a dividend company:



Here is the link to the introductory video with the Khan Academy on reading balance sheets.

The next entry within this series, will discuss one of the most important facets and tools of some stocks that pay dividends, that allow you to compound your returns with a single purchase.

Edit: Dumped out of the E-Mini S&P 500 option for the loss today. Will get the final numbers, and update the money management numbers for tomorrow.

* * *

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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