Daily Income for Life Trading Strategy

To do anything successfully in life, you need a plan. With the goal of creating Daily Income for Life, a plan is really, really important!

The Daily Income for Life Plan is a simple two step process:
Step 1: Grow Capital: Agressively Trade Small Cap stocks for fast capital Gain
We'll focus on finding stocks that have 200% growth potential, or a clear 2- 4 week swing trade or short term trade opportunity identyable with freely available internet charting and technical analysis.  We won't day trade as it requires too much real-time attention to the market.

Step 2: Invest for Income and Reinvest that Income: Convert the short terms gains into investments that pay regular income. This could be dividend stocks, REITS, ETFs and Royalty Trusts that pay high dividends. Scour the market for income paying investments. Real Estate Trusts, Dividend ETFs, Oil and Gas Royalty trusts, Shipping companies, utilities and railways, Mortgage and investment trusts.  Between 10% and 20% p/a returns are the goal. Reinvest all the dividends to utilize the power of compounding.

Rules for Selecting Daily Income for Life investments

1. Dividends beat growth

2. Reinvesting dividends beats cashing them

3. Higher yeilds beat lower yeilds

4. Small cap beats large caps

5. International beats domestic

6. Emerging markets beats developed

7. Tax-advantaged beats taxable

8. Monthly payments beat annual payments


Rules for Trading to Accumulate Capital

1. Swing trade off clear support levels

2. Use trailing stops to lock in profits

3. Seek out volatility

3. Take small profits and reinvest them into dividend payers to multiply them over time.

4. 10% in two weeks is a great trade! The are 10% gainers happening everywhere in the market.