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.