ADG buying back in long at $9.25 into income positon.

Executed as planned in my May 9 post, buyback of the shares I sold at $11.26, on May 14.

Here is what I said in my original post when I sold AGD at $11.26 on April 14.

" 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. "

By buying back the same number of shares as I sold, I effectively I effectively boosted the capital appreciation on 30% of my AGD position by $2 per share by sacrificing one month of income while timing the market. Thank you you Greece for this opportunity to benefit from your malaise.

So, I did exactly what I had planned, with under a month turnaround of this strategy. Now it's time to hold this stock and collect those monthly dividends again.

If I had been even more confident, I would have shorted the down trend. My technical analysis skills and intuition are not that good yet, which is why I enrolled in the Online Trading Academy Professional Trader seminar.  

Of course, there is the likelyhood that ADG goes lower. You can see I bought in a downtrend that hasn't necessarily shown a reversal, with the small green candle appearing on May 15th probably being  more about exhausted sellers than confirmed buyers. Ironically, the last green candle on the chart was a  a terrible day in the markets and also a 1% loss for my portfolio overall.  However, I wasn't looking short term with this trade, although I did want to sneak in before May 15th, which is when you have to own this stock to get paid at the end of the month.

The real reason I'm in AGD is because it plays 11c per share every month - about 14 % per annumn. I'm willing to take some downside risk because that 14% dividend covers some of that risk. Also, because I'm cost averaging the reinvested income every month, if it drops down a bit, I'm reinvesting at a lower cost. Which in turn increases the payback if the stock rises to the level where technical analysis tells me that the capital gains are a safer bet than waiting on dividend checks.

Happy investing