Can you really trade dividend stocks profitably in just 10 minutes a day? Yes you can! I'm here to share with you a tried and tested investment strategy that has been working for me for years. You may be asking yourself... Why am I willing to share this powerful and profitable trading strategy with everyone? Will it effect my trading? No. Will it change the outcome of future trading scenarios for me? No.
The Strategy is called "Dividend Capturing". It is easy to understand and just as easy to implement. Over the years I worked it out to a 5 simple step process:
Step #1 Buy the stock before the Ex-date.. The Ex-dates for dividend stocks can be found in many publications online. Here is a quick video to show you some of the places in which I use to find some great stocks to invest in using this strategy.
Step #2 Here is where I cheat or should I say increase my odds of winning more trades. Over the years I have come up with some formulas and mathematical equations to help me out.... So to make this easier I created some software that does all that tedious work in seconds where it used to take me hours for each trade. So step two is to plug in the stocks coming up on their Ex-date into my stock calculators.
Step #3 After the calculator picks the best stocks I then look to the stock chart to check on the trend direction to make sure the stock is not digging a hole in the basement (tanking) or trying to climb a ladder to reach for the stars (to high out of normal range). Some people say that chart reading is difficult, but it really is a simple process that even a school aged kid can easily see. If it difficult to see then just go to the next one.
Step #4 After purchasing the stock wait to collect your dividend check... that usually means waiting til after the date of record. That should be just 2-5 days after purchase. Put in your sale order "GTC" (good til cancel) for a few pennies more that what you paid for it. Why just a few pennies? Over the years of trading I have found that a small fast profit every week, plus the collected dividends will add up faster than waiting for one big move.
Step #5 Is definitely the easiest step out of all of them. Step five... Repeat the process but of course keep track of those successful trades. Dividend stocks do have a tendency of repeating this pattern. Making notes and putting all your successful trades into a calendar will make trading easier for you in the years to come.
These five steps can be done in less than ten minutes a day and that will allow you more time to do the more important things in life.... like enjoy the process of living.
How do you find great dividend stocks? Well that would ultimately depend on what your end game is. I do understand that is a bold statement but it is true. Why are you investing in the stock market in the first place?
With this question there opens up a very large can of worms. There is no one perfect dividend stock investor. Just as there is no... no perfect spouse. Everyone is looking for something different when it come to their investing. In this article I'm just going to concentrate on what it is that I am looking for and what I teach to my clients.
Monthly cash flow is what I am looking for. Safe, no risk cash flow... plain and simple. That is why I invest in the first place. Of course I do reinvest some of my profits so my nest egg keeps growing and growing. So if you are here looking for the answers then this i have to say to you. First and foremost figure out what it is you are looking for in your investments... Growth, cash flow or both
After figuring out what kind of investing you want to do then come back and look for the Ultimate dividend stock list.
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.