Been working on this a little bit and had good results, so far. When I find a good quality stock that pays dividends I try to go all in and keep the profit in shares, the goal being to recoup my entry cash back each trade. I have no limit on number of daily trades I can make so I will sometimes trade the same stock several times a day, if necessary. I try to close my positions daily and my main rule is work on 1 stock at a time. Once I aquire these stocks they are free "to me anyway" as I only have unrealized market value in them, naturally they bounce and dip but the goal is to collect the future dividends, once I have blocks of 100 I can write calls at will for more possible income or I can readjust my positions in each holding Example, if I have 500 shares of aaa and it blows earnings and jumps to the moon, I will close that position and wait for a better reentry price. On the otherside if it falls of the cliff, I will just hold and trade it again, repeating the cycle.This is all in the initial stage and will be fine tuned as I go. Please feel free to chime in your thoughts.
NOTE.If the initial trade goes against me ( and it has). I will cut n run in a heartbeat, I try not to chase falling knives.Best to move on to the next one.
@Timbo Hey Man, just been researching dividends for "safer" plays for my long term accounts. Been reading a lot of @JerryM's postings too. Just wanted to see what, if any, success you've had here with your method.
