Green Dot Portfolio: October 2018 Update - A 12%+ First Year

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Includes: AWF, BGX, BXMT, CLNY, COR, D, DFP, DSL, EMD, EPR, FAS, FAX, FEO, FLC, FRA, FRME, GE, HASI, HD, HPS, HYT, JPS, KBE, KHC, KIO, KRE, LDP, LOW, MIC, MSD, MU, NVG, PFXF, RA, RNP, RQI, SCO, SKT, SNV, SOXL, SPXL, SPY, SYF, TNA, TOL, TQQQ, TZA, UGLD, USLV, UTF, UTG, VTR, XLB, YINN
by: Green Dot Investor

Summary

Total realized cash return on portfolio investment for October from dividends and swing trades was +1.65% and has totaled +12.76% for the past 12 months (my goal was +8%).

Dividend income peaked for October, at $729. I closed 5 of 6 stock swing trades this month for profits, and 41 of 42 this year for +6.86% (+44.2% annualized).

I closed 4 of 6 option premium swing trades for profit in October, and 24 of 30 this year.  Winners averaged +38.8% but losers averaged -77%, impacting cash to re-invest.

I made adjustments to my income holdings to free cash for swing trades for the change in market trend. I also added new dividend stocks and added to some CEFs.

The market (using the SPY) corrected in October, but this pullback is a move of a higher degree than in early 2018, so it should drop further after this recent bounce. I'm trading accordingly.

Welcome to my October update for my Green Dot Portfolio, a small self-managed retirement portfolio created in a Roth IRA trading account. It has now been a full year since I presented my portfolio on Seeking Alpha, and it's time to assess not only results for October but also progress for the first year. My initial goal was to achieve a total realized annual return of at least +8% in cash income using high-yield dividend investments and swing trading. In one year, I have exceeded my goal by >50%, with a total cash income of +12.76%.

Unlike the unrelenting uptrending markets in 2016-2017 wherein everyone likely made great profits, I was fortunate to exceed my goal during a volatile and challenging year as the overall markets climbed and retreated significantly two times.

I said from the start that I offered my Green Dot portfolio in the hope that readers might find something of interest and value. I think that my portfolio is perhaps quite different from approaches taken by most investors. This dynamic and actively-managed portfolio has evolved, and readers have realized that I mix a number of strategies and tactics in order to meet my goal. I know that some readers were new to swing trading, and they have seen me move in and out of stocks and ETFs to capture short-term profits. In particular, some have been surprised to see that I rely mostly on technical analysis and far less on fundamental or sentimental factors. I know that some readers were also new to swing trading option premiums, and I have tried to show how that can add to the bottom line. Green Dot also has a core of high-yield REITs and Closed End Funds, the latter of which I know was a new asset class to some readers. I introduced some of my specific sources of data and research, such as CEFConnect, and the use of Elliott Wave analysis for understanding larger market patterns (Caldaro's Objective Elliott Wave). I also introduced several of the subscription services that often provide specific ideas for my portfolio, including The Contrarian Outlook and InTheMoneyStocks.

My portfolio still has a somewhat small following, but I have continued to slowly attract readers and followers each month. I have greatly appreciated the interest and the many comments and questions from readers over this past year.

Recap of Market Action for October 2018

October was a major losing month for the markets, the second major sell-off in less than a year. Looking back over this past year, and using the SPDR S&P 500 Index ETF (SPY), after the market melt-up that started in 2016 extended into late January of 2018, the market corrected -11.8% into early February. That downtrend actually ended on 4/2 but fell just short of a lower low than 2/9. The SPY took the next 5 months to finally break above the January high. Upside progress didn't last long, as the market topped on 9/20. From 9/20 until the SPY close on 10/29, the market pulled back about -11.6%, almost to the .786 retrace of the move from the 2/9 pivot low to the 9/20 pivot high.

Interestingly, the drop in the SPY in early 2018 was nearly identical to the drop in October in terms of SPY points. From the 1/26 high (SPY 286.63) to the 2/9 low (SPY 252.92), the SPY dropped 33.71 points. And from the 9/20 high (SPY 293.94) to the 10/29 low (SPY 259.85), the SPY lost 34.09 points. But this is not just a simple "measured move," as they are called.

Readers who have followed my Green Dot portfolio know that many times this past year I have referred to Elliott Wave analysis, in particular the work of Tony Caldaro (Objective Elliott Wave). Caldaro has been saying that the drop in early 2018 was an Inter-mediate level wave (Int. v of Major 1 of Primary III). If Major wave 1 completed in late September, then this drop now is part of Major wave 2, a wave of a higher degree. That means that the market drop is not over. But unlike the analyses from TV commentators that I've heard recently, this drop will not progress directly to a new low, a low that will surpass the February low. This Major wave 2 down should consist of three waves of a lesser degree (Minor waves), one down, one up, and a final wave down to a new low. The SPY seems to be following this pattern.

Here's Caldaro's most recent pattern analysis chart. The chart shows that Minor wave 1 down, which consisted of 3 Minute waves (a,b,c), has likely completed due to the bounce that started on 10/30.

(Source: stockcharts.com - note: charts on the website update several times per week.)

Caldaro expects at this time that Minor wave 2 up is likely to retrace between 50% and 61.8% of the distance of Minor wave 1 down. Or more. The general target area is a bounce to SPY 277-281. The SPY closed on 11/1 at 273.51. The bounce target for this near-term move is very close to that being used by other traders I follow. It's nice to have the two sources that I count on the most for my trading to be in sinc.

I have aligned my trading with the expectations for the 3 Minor waves that comprise Major wave 2 down.

Dividend Income

Total monthly income from dividends (not including dividends for swing trades) in October totaled $729, the highest monthly income to date. As I have recently taken profits on many REITs and stocks, Closed End Funds contributed 81.7% of dividend income for October. Average monthly dividend income (blue line on chart below) has risen slowly and is now at a new high, at $541.

(Source: Chart created by author from portfolio data as of October 31.)

For the past year, dividends totaled $6,190 and contributed 48.5% of total portfolio cash returns. I have different sized holdings and have added incrementally to many over time, so the investment varies, but overall I have received the greatest total dividend income from 2 CEFs over the past year: RA ($485.39) and DSL ($462.90).

Swing Trades

October was a busy month for my swing trades. I closed 5 out of 6 stock/ETF swing trades for profits and 4 out of 6 option premium swings for profits. I received a total of $999 from swing trades in October, and I received $4 from dividends in swing trades. As I explain below, because my portfolio investment amount changes every month, I count all profits as income and do not calculate net trade results. But losses are an opportunity cost in that they reduce the funds available for either additional dividend income or additional swing trades. Unless noted, new swing trades are still open.

For those new to my monthly updates, I provide detailed information, charts, and my trade logs for swing trades in my weekly blogs for followers. In May, I detailed my simple approach to swing trading, just the option premiums on stocks, in this article.

Closed Option Premium Swing Trades

  • On 10/4, I "sold to close" my 2 HD Jan 18 2019 190 Puts on Home Depot (HD) at $3.30/contract. I bought this on 9/11 at $2.30/contract. After costs, the net gain was +40.58% for 18 days in the trade.
  • On 10/4, I "sold to close" my 3 LOW Jan 18 2019 100 Puts at $1.91/contract. I bought these put option premiums on Lowe's (LOW) on 9/17 at $1.59/contract. After costs, the net gain was +17.37% for 14 days in the trade.
  • On 10/4, I "bought to open" 8 USO Jan 18 2019 Puts at $0.47/contract. On 10/11, I "sold to close" these Puts at $0.71/contract for a net gain of +40.44% for 6 days in the trade.
  • On 10/15, I "sold to close" my 14 CSX Nov 16 2018 55 Puts at $0.12/contract for a net loss of -73.70% for 62 days in the trade.
  • On 10/26, I "sold to close" my 3 AAPL Dec 21 2018 175 Puts at $1.35/contract for a net loss of -27.3% for 60 days in the trade.
  • On 10/30, I "sold to close" my 10 F Jan 18 2019 10 Calls at $0.35/contract for a net gain of +14.05% for 36 days in the trade.

Closed Stock and ETF Swing Trades

  • On 10/2, I sold my 125 shares of Direxion Daily Small Cap Bear 3x Shares (TZA) at $9.00/share for a net gain, after a small dividend and costs, of +12.62% for 23 days in the trade.
  • On 10/16, I sold my 70 shares of ProShares UltraShort Bloomberg Crude Oil (SCO) at $13.92/share for a net loss of -6.79% for 25 days in the trade. This was my only losing stock/ETF swing trade this year.
  • On 10/22, I bought 35 shares of the mid-cap luxury home builder, Toll Brothers Inc. (TOL), at $29.10/share. I exited the trade on 10/30 at $32.15/share for a net gain of +9.55% for 7 days in the trade.
  • On 10/26, I bought 28 shares of Micron Technologies Inc. (MU) at $35.10/share. I sold the shares on 10/31 at $37.25/share for a net gain of +5.18% for 4 days in the trade.
  • On 10/26, I bought 20 shares of Direxion Daily Financial Bull 3X Shares (FAS) at $53.40/share. I sold this 3x leveraged ETF on 10/31 at $59.20/share for a net gain of +9.97% for 4 days in the trade.
  • On 10/26, I bought 12 shares of Direxion Daily Semiconductor 3X Bull Shares (SOXL) at $89.70/share. I sold my shares of this is a 3x leveraged ETF on 10/31 at $101.50 for a net gain of +12.27% for 4 days in the trade.

Newly Opened Swing Trades

  • On 10/18, I bought 50 shares of Direxion Daily FTSE China Bull 3X Shares (YINN) at $17.77/share. This trade was closed on 11/1 and will be reported in next month's update.
  • On 10/22, I bought 25 shares of Materials Select Sector SPDR Fund (XLB) at $52.75/share.
  • On 10/24, I bought 20 shares of the SPDR S&P Regional Banking ETF (KRE) at $51.00/share.
  • On 10/26, I bought 25 shares of the SPDR S&P Bank ETF (KBE) at $40.8901/share. This is a companion trade to the KRE.
  • On 10/26, I bought 25 shares of Direxion Daily S&P 500 Bull 3X Shares (SPXL) at $41.00/share and added 25 shares later in the day at $39.50/share (average of $40.25/share). This is a 3x leveraged ETF and carries additional risk.
  • On 10/26, I bought 20 shares of ProShares UltraPro QQQ ETF (TQQQ) at $50.00/share. This is a 3x bull ETF on the Nasdaq-100 index (ex financials).
  • On 10/26, I bought 18 shares of Direxion Daily Small Cap Bull 3X Shares (TNA) at $58.00/share. This is a 3x leveraged ETF and carries additional risk. This trade was closed on 11/1 and will be reported in next month's update.

Cumulative Stock Swing Trades

Overall, I have been fortunate to close for profit 41 out of 42 non-option swing trades this past year (+97.6% winners). I'm excluding here the 5 winning swings that I closed before the beginning of November 2017 when the portfolio was under accumulation. Readers can refer to previous monthly updates and my weekly blogs for details about my swing trades. I've realized a total net cash return (price gains and dividends on swings) of nearly $2,900 on the >$42,100 that I've deployed for these 42 swing trades, resulting in a total net gain of +6.86% for an average of 39 trading days (+44.2% annualized).

These were admittedly fairly small trades, averaging just $1,003 in total cost and $69 in profits per trade. Profits included $222 in dividends. With an additional distribution from my 457 plan coming in November, I plan to scale up the average investment in each swing trade by 50% for the coming year, and hopefully to keep increasing the size of trades every year thereafter. A number of these trades were made following a swing trading service to which I subscribe. Going forward, I may add more of those swings to this portfolio (I also trade outside of my Green Dot portfolio).

The chart below shows the percentage gains for my 42 stock swing trades for my Green Dot portfolio for the past 12 months.

(Source: Chart created by author from portfolio data as of October 31.)

Cumulative Option Premium Swing Trades

Since I started trading option premiums in April, I have closed for profit 24 out of 30 option trades (80% winners), adding $3,450 in cash to my portfolio from winners for the total $12,508 deployed for options, or about +27.6%. Cash income from winning option trades comprised about 26.4% of total cash income this past year.

Obviously, the 6 losing trades did not add any cash to my portfolio and, overall, the percentage losses were higher than for my winning trades as I let several losing options play out to expiration and dumped others mostly about one month from expiration.

The chart below presents the percentage gains/losses for my option premium swing trades.

(Source: Chart created by author from portfolio data as of October 31.)

Green Dot is not a fixed value portfolio, so I have not calculated net change but rather total cash added. The losses are, however, an opportunity cost in that losses mean fewer profits to re-invest in other swing trades or fixed income positions. But to be fully transparent, the value of the 1 losing stock swing trade was small, at $71, and the value of the 6 losing option premium trades was $2,495.

Holding options to expiration is particularly damaging. It's interesting that 11 of my 34 winning option premium trades (45.8%) were Puts, whereas 5 of the 6 losing option trades (83.3%) were Puts. But I'm not sure that it is necessarily more difficult trying to identify a topping stock pattern compared to a bottoming pattern. I think that going forward I may just dump an option (if it is not an add-to candidate) when it's down by a specific percentage farther away from expiration value, such as 40-50%. That should reduce the impact of any losing option swings and preserve more cash for other trades.

Of the 4 losing option trades, 2 were for AMD and 2 for CSX. I was definitely correct that AMD was very overvalued and would correct, but I mistimed the trades. AMD was a strong stock and topped later than I thought it would, but it then lost 50% of its value within a month and a half after topping. CSX and AAPL both formed more of a rolling top and dropped less precipitously, and the value of the option contracts did not change drastically.

Overall, as I have said before, I consider swing trading as a valuable component of my strategy for realizing above-average returns, as dividends alone are not likely to generate enough cash income.

Income Positions

Although I initially missed the big drop in the markets on 10/9 and 10/10 to add to several of my CEFs, I added shares to a number of them in early October (10/3) when the SPY slipped below the 20-day MA and hit the 50-day MA. I then sold some REITs and CEFs in mid-October as the markets rebounded, to raise some cash with the expectation that the markets would drop further. As I noted in my weekly blogs, I used the cash for some swing trades. Once the markets again drop to a new low for the year, I plan to re-enter most of the positions that I sold.

The list below summarizes the adjustments that I made to my income positions in October. Data on distribution yield and discount to Net Asset Value for CEFs are for the close of the week during which I made the purchase.

Please note that, as I have done for the duration of my portfolio, net gains on these 8 income positions sold are considered portfolio adjustments and are not counted as income.

Added to Positions

  • On 10/3, I added 85 shares of AllianceBernstein Global High Income Fund (AWF) at $11.64/share. This CEF pays an income-only distribution of $0.0699/share/month (7.24% annually) and is trading at a -11.81% discount to Net Asset Value. This brings my total position to 820 shares and reduces my average unit cost to $11.9639.
  • On 10/4, I added 50 shares of Flaherty & Crumrine Dynamic Preferred & Income Fund (DFP) at $22.57/share. This CEF pays an income-only distribution of $0.148/share/month (7.95%) and is trading at -7.54% discount to NAV. This brings my total position to 251 shares and reduces my average unit cost to $23.6429
  • On 10/8, I added 80 additional shares of AllianceBernstein Global High Income Fund (AWF) at $11.58/share. This CEF pays an income-only distribution of $0.0699/share/month (7.28% annually) and is trading at a -11.86% discount to NAV. This brings my total position to 900 shares and reduces my average unit cost to $11.9298.
  • On 10/8, I added 50 shares of DoubleLine Income Solutions Fund (DSL) at $20.00/share and added 50 shares at $19.48/share. This CEF pays an income-only distribution of $0.15/share/month (9.42% annually) and is trading at a -5.54% discount to NAV. This brings my total position to 545 shares and reduces my average unit cost to $20.2358.
  • On 10/8, I added 85 shares of Blackrock Corporate High Yield Fund (HYT) at $10.37/share. This CEF pays an income-only distribution of $0.072/share/month (8.50% annually) and is trading at a -12.70% discount to NAV. This brings my total position to 315 shares and reduces my average unit cost to $10.5094.
  • On 10/8, I added 50 shares of KKR Income Opportunities Fund (KIO) at $16.16/share. This CEF pays an income-only distribution of $0.125/share/month (9.42% annually) and is trading at a -8.40% discount to NAV. This brings my total position to 200 shares and reduces my average unit cost to $16.2530.
  • On 10/8, I added 44 shares of Brookfield Real Assets Income Fund (RA) at $22.57/share. This CEF pays an income-only distribution of $0.199/share/month (10.68% annually) and is trading at a -5.89% discount to NAV. This brings my total position to 314 shares and reduces my average unit cost to $22.9243.
  • On 10/22, I added 40 shares of Synchrony Financial (SYF) at $29.75/share. Readers may recall that in late July I bought 40 shares of SYF at $28.95 but took profits in late September at $33.00. I was willing to hold SYF for several reasons including share buybacks and dividend increases, but I also saw the advantage of taking profits when I considered the market and the stock price attractive. I also bought 40 shares earlier in July at $33.30 and still hold those. So I now hold 80 shares at an average cost of $29.35.

Sold Positions

  • On 10/8, I sold my 36 shares of EPR Properties Inc. (EPR) for $67.98/ share for a net profit of +6.7%. I bought 14 shares of this REIT on 8/4/17 at $69.72/share and added twice, including 10 shares on 10/17/17 at $67.65 and 12 shares on 1/3/18 at $63.80. I collected 14 monthly dividends for a net gain of $162.81 (+6.7%). This is a great REIT paying over 6%, but it had clearly topped for the shorter term in mid-September. While I was not highly profitable on my base cost basis, selling was decently profitable when adding in the dividends collected.
  • On 10/16, I sold my 55 shares of Blackstone Mortgage Trust, Inc. (BXMT) at $32.585/share for a net profit, after costs and including dividends, of +$154.75 (+8.93%).
  • On 10/16, I sold my 110 shares of Blackstone/GSO Long-Short Credit Income Fund (BGX) at $16.06/share for a net profit, after costs and including dividends, of +$111.75 (+6.38%).
  • On 10/16, I sold my 100 shares of John Hancock Preferred Income III (HPS) at $17.74/share for a net profit, after costs and including dividends, of +$23.83 (+1.3%).
  • Given the change in the market trend and despite that I had just added to this CEF the previous week, on 10/16, I sold my 200 shares of KKR Income Opportunities Fund at $16.17/share for a net profit, after costs and including dividends, of +$124.11 (+3.81%).
  • On 10/16, I sold my 175 shares of Cohen & Steers Quality Income Realty Fund (RQI) at $11.51/share for a net profit, after costs and including dividends, of +$53.70 (+2.59%).
  • On 10/16, I sold my 240 shares of Cohen & Steers Infrastructure Fund (UTF) at $22.18/share for a net profit, after costs and including dividends, of +$392.27 (+7.45%).
  • On 10/16, I sold my 85 shares of Reaves Utility Income Fund (UTG) at $30.15/share for a net profit, after costs and including dividends, of +$195.26 (+7.79%).

New Positions

  • On 10/22, I bought 75 shares of Synovus Financial Corp. (SNV) at $40.747. This is what I call a dividend growth stock. Synovus is appealing in that it has raised its dividend +257% over the past 5 years, yet its share price has not kept pace with the latest dividend increase. At the time of my purchase, SNV's price growth was only about 77%. This suggests that there is upside potential as the higher dividend acts as a magnet for price appreciation, as it has over the past few years. The Y Chart below shows the dynamic of the percentage change in the past 5 years for both the dividend growth and share price.

Chart

(Source: Y Chart created by author using Seeking Alpha authors' tools.)

  • On 10/22, I bought 35 shares of First Merchants Corp. (FRME) at $41.50/share. I'm starting a position in my portfolio for this small cap bank stock as it also has a lag in the growth rate of its share price compared to the growth rate of its dividend (chart below). The concept behind these stock picks is that investors will in time bid up the share price once they realize the growing payout. The two growth components together should translate into high total return.

Chart (Source: Y Chart created by author using Seeking Alpha authors' tools.)

  • On 10/30, I bought 10 shares of CoreSite Realty Corp. (COR) at $89.99/share. I previously held this REIT, buying it on 2/16 at $96.50/share and selling for profits on 3/5 at $104.51/share. I said then that I would pick this up again when the price came in, and it did recently. COR's price has been rising along with increases in its dividend and was essentially finally not "over-priced" at the time I bought it. I'm looking for continuing increases in COR's payout and associated price appreciation.

Chart COR data by YCharts

(Source: Y Chart created by author using Seeking Alpha authors' tools.)

Realized Total Return

My Green Dot portfolio generates cash income each month through dividends and profits from swing trades. These are realized gains, or cash that is available for additional investment. My portfolio goal this past year was an 8%+ annualized gain.

The table below shows the total investment and investment return in my portfolio each month, including total profits from swing trades (ex-dividends), dividends on swings, and other dividends collected. Dividends are reported for the month received in my account. October was the highest income month for the past year, at $1,732.

Month $ Cost $ Swing Profits $ Divs on Swings $ Other Dividends $ Total Income % Return on Investment
Nov17 79,154 509 71 235 814 1.03%
Dec17 79,587 445 48 353 846 1.06%
Jan18 94,560 548 37 509 1,094 1.16%
Feb18 98,637 160 - 473 632 0.64%
Mar18 95,878 154 5 497 656 0.68%
Apr18 100,656 64 - 598 662 0.66%
May18 104,638 1,026 - 612 1,638 1.57%
Jun18 105,394 1,068 44 542 1,654 1.57%
Jul18 111,532 753 - 707 1,460 1.31%
Aug18 108,951 134 14 597 746 0.68%
Sep18 109,258 332 - 486 818 0.75%
Oct18 105,036 999 4 729 1,732 1.65%
Total 6,190 222 6,339 12,751 12.76%

The 12-month total cash return is now +12.76%, exceeding my annual goal of at least +8%. The chart below shows total monthly percentage return on portfolio cost at the end of each month. The heavy blue line below is the average monthly percentage return, which is now +1.06%. This is an increase from September (+1.01%), but a bit lower than the high in July (+1.08%).

(Source: Chart created by author from portfolio data as of October 31.)

The chart below depicts the monthly source of realized cash portfolio profits. Overall, the chart clearly shows that my portfolio cash returns have been achieved through both high-yield income investments and swing trading. The second half of this past year has mostly out-performed the first half, and that is logical as I have re-invested my dividend income each month.

(Source: Chart created by author from portfolio data as of October 31.)

Unrealized Gains/Losses

Total current value of all 37 positions in my portfolio at the end of October was -12.3% below costs, the worst level in the past year. The "October swoon" is largely responsible, so I am not overly concerned as I expect stock, REIT, and CEF values to increase once the bull market resumes. Most of my non-swing holdings are high-yielders, so I at least get above-average monthly income.

Current Portfolio

Below is a summary table of the 37 non-option holdings in my Green Dot Portfolio as of October 31.* Full names of holdings as of mid-November 2017 were included in my Part 2 article introducing the portfolio, and new additions have been described in my weekly position update blogs.

At this time, a few positions are just over 10% of the total portfolio investment. Excluding option and stock swing positions, the average unweighted dividend/distribution yield of the portfolio is 7.18% (7.81% not including the income stocks).

Symbol Qty. $ Unit Cost Cls. 10/31 % Div. Yield % of Portfolio
Preferreds
PFXF 84 20.149 18.71 6.08% 1.6%
REITs
CLNY 345 11.785 5.87 7.62% 3.9%
COR 10 89.990 93.86 4.49% 0.9%
HASI 33 18.310 20.75 6.49% 0.6%
SKT 125 26.052 22.26 6.09% 3.1%
VTR 20 58.435 58.04 5.35% 1.1%
CEFs
AWF 900 11.930 11.06 7.57% 10.2%
DFP 250 23.643 22.00 8.13% 5.6%
DSL 545 20.236 18.76 9.64% 10.5%
EMD 50 15.770 12.47 9.60% 0.8%
FAX 1,000 4.956 3.93 10.68% 4.7%
FEO 50 17.084 12.09 11.71% 0.8%
FLC 130 20.507 17.78 8.04% 2.5%
FRA 240 14.078 12.97 5.93% 3.2%
HYT 315 10.509 9.82 8.70% 3.2%
JPS 948 9.485 8.40 8.01% 8.6%
LDP 80 25.215 22.76 8.22% 1.9%
MSD 400 9.523 8.33 6.23% 3.6%
NVG 249 15.236 13.40 5.89% 3.6%
RA 314 22.934 21.22 11.27% 6.9%
RNP 50 19.900 18.16 8.20% 0.9%
Income Stocks
D 15 80.194 71.42 4.58% 1.1%
FRME 35 41.500 41.61 2.08% 1.4%
MIC 33 69.741 36.95 10.56% 2.2%
SNV 35 40.741 37.56 2.69% 1.4%
SYF 80 29.350 28.88 2.92% 2.2%
Swing Trade Holdings
GE 103 23.922 10.10 4.71% 2.3%
KBE 25 40.890 42.86 1.82% 1.0%
KHC 9 80.994 54.97 4.47% 0.7%
KRE 20 51.000 53.99 1.83% 1.0%
SPXL 50 40.250 43.01 0.57% 1.9%
TNA 18 58.000 61.85 0.19% 1.0%
TQQQ 20 50.000 52.21 -- 1.0%
USLV 12 10.555 59.84 -- 1.6%
UGLD 16 7.930 82.86 -- 0.9%
XLB 25 52.750 52.61 2.08% 1.3%
YINN 50 17.770 17.79 2.96% 0.8%

* Note: As of the date of publication of this article, the portfolio no longer includes TNA and YINN, which were sold for profits.

Final Thoughts

Given the overall market struggles for the past 12 months, I'm satisfied with the progress of my Green Dot portfolio. I know that I made mistakes, including leaving money on the table and mistiming some of my option premium swing trades, and I hope to learn from this experience and to improve. That said, I think that my portfolio strategy can continue to deliver total cash returns that will meet my goal and continue to outpace the overall markets. So I'm going to increase my goal for the next 12 months from +8% to a total cash return of +10%.

My Green Dot portfolio is one of several that I manage and represents one of many possible approaches to investing and trading. My costs are relatively low as I have an active trader discount, and I have no taxes on swing trading profits or dividend income as this portfolio is in a Roth IRA. What I do here may or may not be appropriate for others, so please perform your own due diligence if you follow any of my ideas or trades. I wish readers well with their own endeavors!

Author's note: I appreciate the comments and questions from readers in the Seeking Alpha community, and I look forward to continuing to share my investing experience and to learn from others.

If you found this article of interest and want to read more about my Green Dot Portfolio and my dynamic income and swing trading approach to investing, please click the "follow" button at the top of this page. Please share this with others who you think would be interested.

Best to your investing/trading!

=Green Dot Investor=

Disclosure: I am/we are long AWF, CLNY, COR, D, DFP, DSL, EMD, FAX, FEO, FLC, FRA, FRME, GE, HASI, HYT, JPS, KBE, KHC, KRE, LDP, MIC, MSD, NVG, PFXF, RA, RNP, SKT, SNV, SPXL, SYF, TQQQ, UGLD, USLV, VTR, XLB.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.