Search This Blog

Friday, August 22, 2008

Dividend Investing, DRIP's and Taxes

Quotations of the Day:

"I'm proud to be paying taxes in the United States. The only thing is I could be just as proud for half the money" - Arthur Godfrey


* * *

Challenge Accounts:

Investing Account Balance:
$302.35
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Personal Trading Thoughts: The room that you usually see me record these videos in? Well, I was so graciously informed (ONLY TWO DAYS AGO) that my wife plans to paint it. Not planning on trading, as long as the disaster that is fixing up this place continues on around me, as I'm trying to work. Can you tell I'm frustrated?

Personal Investing Thoughts: DRIP remains on for all of my stocks. I have my eye on a few stocks for my long term investment portfolio. But also I have in mind that there are signs of weakness in the midst of this relief rally. In addition, September is a month of extreme seasonal weakness. Therefore, I will wait. Sometimes, the best thing you can do with investing, is know when to just wait.



With Dividend Investing, comes a few complexities. Cost Basis. Taxes on Dividends. Consistent changes to your cost basis, due to DRIP. Believe it or not, there is a way to greatly simplify all of this. (video included)



Tomorrow is the 'Week in Review', if I can get some semblance of sanity in the house around me enough to record it ...

* * *

Challenge Project Account Balances and
Money Management Numbers:

Investing Account Balance:
$302.35
Stock / Futures Trading Balance: $954.13
Online Savings Balance: $47.39

Total Trades: 6
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $56.63
Average Loss: $74.27
Accuracy Rate: 33%
Average Reward: $175.34
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Up + $53.84

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, and tolerance for risk.

Search Investing and Trading Articles and Products