Dividend stocks... surviving the dips and sell-offs that come with investing in the stock market. Investing in the stock market can sometimes throw you into a tizzy or panic when your stocks dip in value. Some stocks do move up and down as much as 50% of the stock price during the trading year. Some new traders and even seasoned investors alike think they are ready for this type of movement. In reality they end up panicking when they see their account value drop like a rock and often make some dumb decisions like selling at a loss, or holding on to a loser too long. Keeping your cool and remembering why you are investing in the first place will save you some headaches and sleepless nights. ( I know I have had my share of those) Yes some stocks will fluctuate and you will be caught at some time with a position that is not as favorable as you would like. Now what do you do when your positions drop and you are not wanting to take a loss.
Ask yourself "why are you investing in the first place"? Are you investing for monthly cash flow or future appreciation? Your investment goals will give you clues on how to deal with these types of downturns. If the stock in question has a strong historical performance record of recovery and you can afford to wait it out... then do so. That may be an option, wait for the stock to recover as you collect the dividends. If the loss is small you may want to take it and move to the next dividend stock.
Basically if you want to survive dips and drops when investing in dividend stocks... just stick to your plan and keep a level head with your investing.
Collecting a great yield from dividend stocks is great. Collecting more than 20% is even better. Great dividend stocks that pay a good yield is something everyone should have in their portfolio. How do you pump up the volume on your returns? Simple... use what I call the 10 minute trading strategy. Pick a good dividend stock from a weekly tip sheet, follow a few simple steps. step #1. check the chart to confirm price trend. #2 use our dividend past performance price calculator for confirmation. #3 place your for a well diversified number of shares.
#4 don't be greedy, take a quick profit and move on to the next stock that fits ours perimeters.
With over 252 trading days a year there are over 3400 profitable companies paying out dividends. The old rules of investing are being thrown out and new strategies are being implemented to increase monthly and yearly returns. Dividend Capturing is one such strategy that has proven itself over the years. If collecting a higher interest from your investments is on your list try a new strategy.
Just out of high school I decided to be self employed, after running a successful manufacturing business I had a problem of making more money than I knew what to do with. I started investing, after 23 years of investing I now want to share my strategy with a select few that want an extra edge in their own investing.