TNP open long at $15.12

TNP open long at $15.12 for active trading portfolio. Stock shows cyclic swings with over 10% variance. Ideal for a short term swing trade.

Entry point graph

NOK opened Long at $12.47 after earnings hammering

Nokia is not going out of business any time soon. Unrealistic market reaction to short term earnings results. People are not buying phones because of the economy. Swing trade with profit target $14.

Transmaigne Partners TLP added to Income Watchlist

TransMontaigne Partners (TLP) provides terminaling, storage and related services to petroleum related companies. April 16th the company increased its quarterly distribution 2% to $0.60/share. The distribution is payable on May 11, 2010 to unitholders of record on April 30, 2010. The ex-distribution date is April 28, 2010. The yield based on the new payout is 8.21%

Thanks to Dividend Value for this tip
The price is too high right now to sneak in just before the quarterly dividend payment, but one for the watchlist.

Patience, patience.

INTC closed long position at $24 for 46% gain

INTC - Take Profits at $24? - Testing resistance

Too much investor optimism right now. I'm taking profits all over the place. All my active trading stocks are closed out at a profit. I'm even thinking about closing out INTC at 46% profit, after holding about a eighteen months.  The trailing stop will kick in anyway if all these 2 year highs we are seeing in major stocks tank soon due to the SEC rattling the gilted Goldman cage.

Click on the graph to enlarge.

Top 10 Investment Trusts Stocks with Highest Dividend Yield: IAN, GNV, CFP, WHX, IVR, BKCC, PSEC, KCAP, IGD, BQR

From China Analyst

Inter-Atlantic Financial, Inc. (AMEX:IAN) has the 1st highest dividend yield in this segment of the market. Its current dividend yield is 99.88%. Its dividend payout ratio was 0.00% for the last 12 months. GSC Investment Corp. (NYSE:GNV) has the 2nd highest dividend yield in this segment of the market. Its current dividend yield is 42.18%. Its dividend payout ratio was N/A for the last 12 months. Cornerstone Progressive Return Fund (AMEX:CFP) has the 3rd highest dividend yield in this segment of the market. Its current dividend yield is 17.14%. Its dividend payout ratio was 155.10% for the last 12 months. Whiting USA Trust I (NYSE:WHX) has the 4th highest dividend yield in this segment of the market. Its current dividend yield is 14.31%. Its dividend payout ratio was N/A for the last 12 months. Invesco Mortgage Capital Inc (NYSE:IVR) has the 5th highest dividend yield in this segment of the market. Its current dividend yield is 13.51%. Its dividend payout ratio was 97.74% for the last 12 months.

Blackrock Kelso Capital Corp. (NASDAQ:BKCC) has the 6th highest dividend yield in this segment of the market. Its current dividend yield is 12.90%. Its dividend payout ratio was 66.66% for the last 12 months. Prospect Capital Corporation (NASDAQ:PSEC) has the 7th highest dividend yield in this segment of the market. Its current dividend yield is 12.86%. Its dividend payout ratio was N/A for the last 12 months. Kohlberg Capital Corp. (NASDAQ:KCAP) has the 8th highest dividend yield in this segment of the market. Its current dividend yield is 12.50%. Its dividend payout ratio was N/A for the last 12 months. ING Global Equity Divid.&Premium Opp-ETF (NYSE:IGD) has the 9th highest dividend yield in this segment of the market. Its current dividend yield is 11.67%. Its dividend payout ratio was N/A for the last 12 months. BlackRock EcoSolutions Investment Trust (NYSE:BQR) has the 10th highest dividend yield in this segment of the market. Its current dividend yield is 11.20%. Its dividend payout ratio was 81.72% for the last 12 months.

A Small-Cap Energy Play with a 13% Yield

Article on Whiting USA Royalty Trust from Carla Pasternak

AGD Exit 30% of income position at $11.79 with around 80% profit p/a

AGD has been my favorite dividend reinvestment vehicle of 2009-2010. The profit on this trade was 80% return on original capital investment. I'm exiting about a third of the position, with the target to buy in again with the same amount of cash at a lower price. Thus missing a month or two of dividends, but buying back more shares than would have got by just reinvesting the dividends. It's a really a strategy to accelerate dividend reinvestment by swing trading.

This is a key part of the Daily Income for Life concept. It's very active investing, using technical analysis to try and make trading profits on our investment vehicles when technical analyis shows those profits are there for the taking. Not too greedy, but not asleep at the wheel either.

My investment in AGD outperformed  the Dow Jones by 16%, even despite one of the Dows biggest rallys of the last decade. And I entered AGD before the March 2009 bottom.

Note: I updated the graph two days after updating this post. Notice the t shaped candle (Doji)  on the 14th, the day I sold.

My AGD re-entry point is $9.25, although I'll fine tune that based on how things go. I'll be looking for similar pattern as the left of the graph for reintry - Red line above green, red candles turning to green, all candles below the green. A Doji or two to signal the market has beaten AGD down enough again.I'll probably have to wait 2-3 months for this reentry point.

DARA Exit

OK, so a little too much volatility. Stopped out of DARA position even.  Big daily swings made the strategy not work.

Enter DARA position for speculative biotech swing trade

Successful entry into DARA short term swing trade. Entry point $0.445 on 4/12. 5% Trailing stop. Profit target $0.55.

The Daily Income for Life strategy uses risky, speculative trades like this to increase capital. The capital goes into income stocks for longer term security and dividend and royalty income streams.

The trailing stop trigger after one day is $0.456. So this trade is profitable day 1 due to the high of  $0.48 causing the trailing stop to be higher than the entry point. It doesn't seem much but on a speculative biotech penny stock that one cent between the entry and the trailing stop trigger means my money is safe. That's important when you are trading thousands of shares of your own money on a speculative sector.

Buy signals for this trade were the declining volume on the second graph, the MACD cross (blackline crossing red) on the second graph, and the uptick in RSI on the third graph. Biotechs often get lightly traded, and then explode on the next news release, amplifying a swing trend.

The profit target of $0.55 will needs some good news. If nothing happens, the trailing stop will close the trade out at some point with a small profit. I don't really care when or how much at this point.

Trading Analysis Candlestick indecision Point on AMAT

Noticed a classic turnpoint indicator in AMAT chart. This is an exit point I passed up on because my profit target was $15.00. True to the the pyschology of trading, I have been beating myself up for missing this exit for a few months. Finally learnt enough to figure out what I should has seen. .Isn't hindsight great!

If I'd been watching more closely, I would have seen the  t (doji) in the chart between 1/7 and 1/14, with a high of $14.94, just short of my profit target.  These typically show market indecision -buyers and sellers trying to figure out what to do next. First indicator I ignored.

The third graph is 7-Day Relative Strength Indicator (RSI). When it hits about the 80 line (dark line), thats time to sell. Second indicator I ignored.

The third and biggest indicator I ignored was the big red candle crossing right through the 13-Day EMA indicated that this rally had really run out of momentum. I should have settled for  modest 6% four month profit enough at that point.

When the red candle intersects the 50d EMA on 1/23, the rally turned into a short sell opportunity. You can see the volume climbs on the volumne/MACD graph as the short sellers take advantage of this situation, and everyone elses stop losses and trailing stops get triggered. (the market in general had a lot to do with this as well).

A lot of technical analysis lessons in a small graph.  Profit targets are great, but use technical analysis and trailing stops to get out before a rally collapses.

Exited BPT due to Trailing Stop with 41% profit

Now heres a prime example of how trailing stops help you protect your profits...but annoys you at the same time.

I bought BPT (BP Prudhoe Bay) as in part of my income portfolio at $70 per share. BPT showed a nice run up, plus I'd collected and reinvested dividends. After the wild price movements back in March calmed down, as it climbed again I tightened the trailing stop to 3% in order to not lose the 40% profit I'd made within the last four months. That's like doubling your money if you annualize the return. For an income stock...

Even with a 16% p/a dividend, I'm not adverse to taking trading profits. At 16%, even with compounding, a 40% gain is still a couple of years worth of dividends.

However, I was kind of annoyed to get stopped out on a single days movement on April 8.

Lessons learned. The trailing stop has to be relevant to the daily movement of the stock. Mine was triggered at $99.04. which was pretty much right on the 13-Day EMA (Green Line on the graph). While the price crossing the 13-Day can indicate significant weakening and a downturn, given there was only 1 red candle in the last week I wasn't expecting it to happen.

And a day later it was back at $105...

Oh well. Cash in the bank. I still like BPT, and will probably buy back in when it gets it's next savaging down to the 50-day EMA (the red line).

Found a photo of BP Prudhoe Bay on the web. Its a place you go for income, not holidays.

Happy investing and happy Easter.

Canadian Oil Trust article from Carla Pasternak

This is a very interesting article from the Carla Pasternaks High Yeild International newsletter. Usually she charges for these articles, so thanks Carla for giving this one away for free.

 
 
 
 
One of the trust she mentions used to be in the Daily Income for Life Portfolio. I sold out with a healthy capital gain profit when they cut their dividend. Carla remarks:

"For example, Advantage Oil & Gas (NYSE: AAV) converted to a "growth-oriented corporation" in July 2009 and paid its last monthly distribution of $0.04 per unit in March, down from $0.08 per unit the month before. Going forward, management said it "does not anticipate paying dividends in the immediate future." Instead, it will use the cash flow to reduce debt and focus on developing its natural gas assets. "


Another trust Harvest Energy, was taken over by Korean company. That one made around 25% profit.
The point here is that high income opportunities don't always last forever. If you can make more in short term profit than you are likely to make in the next 2-3 years from dividend income, then take the profit and reinvest it somewhere else.

HXL lessons learned

How long will this rally last? Turns out I got out of my HLX trade way to early. I executed the trade exactly as I had planned. This is good - every trade should have both a planned entry and exit. But you also need to stay flexible, and change your exit if things are looking good.

My entry - red arrow, was at $10.70 Coming down from a big sell off from $14, which is not shown on the graph. My target profit exit was 25% profit, which translated to $13.50 (automated). I also had a trailing stop of 5% to protect my profit if I didn't reach the profit target.  The green arrow was my exit and profit target at $13.50.The cross in the candlestick the day before I hit the profit target (which was an automated sell) was suggesting the the rally was over. Turned out it was more of a rally-bench-rally pattern,  so I missed the second rally. A better strategy would have been to remove my profit exit and simply tighten the trailing stop up to 1 or 2 %, or wait until the candlestick line crosses the 13 day EMA (Green line), with red bars. To date this still hasn't happened.

I'm not complaining. 25% profit in just over a month is still a pretty good trade...