Today I only had one stock in play so I needed to make it pay. Things worked out pretty good. Here's what happened today:
Sold BNPQY @ $36.21. This was a stock loss of -$198.34 but the dividend captured is $294.35, so I was able to net +$95.41.
There were no stocks to buy as nothing got through my screener.
This brings my 14 day total to $1,042.92 for a $74.49/day. This number is a bit distorted down because there was a day or two that I had no stocks in play. But, that's how this strategy works and I'm ok with it.
Tomorrow is a big day with four stocks to buy. I'm looking to buy BEP (Brookfield Renewable Partners), NEWT (Newtek Business Services), BPY (Brookfield Property Partners) and TPVG (Triplepoint Venture Growth). These four stocks represents $574.00 in dividends captured.
When buying and selling a stock for a dividend capture strategy, it's important to enter and exit at the right price. A few pennies one way or another can mean the difference between winning and losing.
Yesterday, I said I would discuss my buy and sell strategy today. Here's a brief explanation. Hopefully, I can get into great detail about this at a future date in a future post.
When buying, I generally like to wait for the market to open and see where it goes in the opening moments. If the pre-market futures points to a strong move, either way, I wait for a few minutes for everything to settle out. If it looks like my stock(s) are going up sharply, I'll wait for the inevitable pullback (hopefully) and step in to buy. If it skyrockets or plummets, I'll get out of the way and wait for stabilization. Especially if it skyrockets, I will probably not step in and buy unless there's some news that would make me want to own it, even at a higher price.
When selling, many of my strategy stocks seem to open (after I bought them and are waiting to sell) up but it is many times short-lived. I try to dump out quickly if I'm profitable. However, if I see a strong trend, I may hold for a while (maybe 30-60 minutes) if the stock is moving up. My general rule is to get out of the stock as soon as possible. Sometimes, there's a strong general market uptrend and I may ride it up for a while.
The key is "don't get greedy"!
Tomorrow is going to be a busy day and I'm ready for it!
Until then, happy trading!
P.S. I would love for you to follow me as you can get all of my posts delivered directly to you. Just go here to follow me.
P.S.S. If you missed the blog post about my 20 rules for dividend capture strategy, here's a link to it.
P.S.S.S. If you missed my blog post yesterday, I gave the link to all my portfolio trades, past, present and future. Here it is again.