August 29, 2012
August 15, 2012
Dividend Capture with TWO 7.6% in 60 trading days
Real Estate REITs are often touted as having excellent annual dividend returns. However, from my observation better gains can be had from timing the fluctuations caused by these companies paying out a large amount of their income. Search my trades on CPLP and AGNC for similar plays on high dividend stocks.
Why wait for a whole year to get a 14% return, when you can get nearly half that in only 8 weeks? This Two Harbours (TWO) trade had a trading gain of 3.8% plus a quarterly dividend of nearly 4%, bringing the total profit to 7.6% in 60 trading days.
This play worked out reasonably, although if I had waited another couple of weeks the return would have been higher as it kept climbing.
Notice in the chart below I timed the sell based on the RSI-7 (bottom chart on the graph) hitting 90. This is a sure sign of a short term pullback in the price. You can see the sharp pullback in the three days after it bounced off the 90 line.
Why wait for a whole year to get a 14% return, when you can get nearly half that in only 8 weeks? This Two Harbours (TWO) trade had a trading gain of 3.8% plus a quarterly dividend of nearly 4%, bringing the total profit to 7.6% in 60 trading days.
This play worked out reasonably, although if I had waited another couple of weeks the return would have been higher as it kept climbing.
Notice in the chart below I timed the sell based on the RSI-7 (bottom chart on the graph) hitting 90. This is a sure sign of a short term pullback in the price. You can see the sharp pullback in the three days after it bounced off the 90 line.
Sold MS - 5.9% in 44 trading days
This was originally planned as a 'MS punished by Facebook IPO Disaster Play'. After MS took a dive due their involvement in the horrendous Facebook IPO (translate: Bankers made a ton of money, small investors took a bath), I calculated that Morgan Stanley was due for a rebound.
However I missed the correct exit point as I was away flying in a paragliding competion (!) so I missed the initial 10% profit point I should have taken on 7/2.
Worked out OK - 5.9% profit including the dividend in a little over a month.
However I missed the correct exit point as I was away flying in a paragliding competion (!) so I missed the initial 10% profit point I should have taken on 7/2.
Worked out OK - 5.9% profit including the dividend in a little over a month.
August 7, 2012
NOG climbing on Positive news 2.5% in 6 Trading days
Week long trade on NOG based on generally positive news and earnings reports.
Finally...some relief
Finally some relief on my negative positions in NOG and RENN. I'd been holding these positions for months now through the summer, and things are finally looking up with social media stocks recovering.
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