Archived site. This is an independent restoration of material previously published on moneymakeslifeeasier.com. It is not affiliated with, endorsed by, or operated by any organisation named on these pages, and the content is historical — it is not current information. About this archive

Money Makes Life Easier

investing in the stock market for cash flow

RECOUP SOME LOSSES FROM THE STOCK MARKET DROP

How do you recover from the market drop last week? Did your dividend stocks actually drop in value or was it just the price fluctuating? The price on dividend stocks actually fluctuate up 50% per year. Dividend stocks have a tendency to stay in a trading range. Usually never going over a certain price(high of the year) or falling below a certain price(low of the year). Some people call this "Price Channeling" or "Range Trading".
Buying the dividend stocks in between the high and the low is always a good idea, never sell for less than what you paid for it unless it makes sense in your long term strategy. When your stocks have dropped below what you paid for them, there are sometimes a strong urge to sell to keep from losing any more money. This may not be a good plan in the long run. Dividend investing is a long term investment strategy. The 10minute trading strategy is a twist on this plan. Buying to collect the dividend and moving onto the next profitable company will allow you to increase your bottom line. Price movements may put your trading activities on hold for a bit but it is all just part of the game. Remember the end game or the worse case scenario "collecting dividneds". Collecting the dividends and just holding onto the stock until it recovers. If the stock never recovers in price then you have a choice to collect more dividends through out the years or take the loss and move on to other dividend stocks and keep the rotation moving.
Remember you never lose with a dividend stock until the company goes bankrupt (choose wisely) or you sell at a loss, something we urge you not to do.

Author

After trading stocks for over 23 years I have come up with a trading strategy that has worked for me and my friends. It’s simple and takes less than 10 minutes a day. My annual returns beats the Wall St pros every year. Maybe it’s time you did your own investing too.

Back to the blog archive · June 2013