Experienced Stock Trader
Experienced stock trader using options and dividends to make the bulk of my income. Not enough to quit my day job, but enough to cover most of my expenses (phone bills, food, car insurance, etc). Over the past few years I have raked-in $60,000. Investing in stocks is all about discipline and patience.
I'd love to connect with other investors to share ideas. I also greatly enjoy showing people new to investing how the game is played. If you are the type who can make a plan, stick to it, and stay focused, you'd be a great investor. Feel free to reach out if you are interested.
Paul
Hi! I've been trading for my own account about 9-10 years now. Moderately successful at best but I've come out profitable consistently. I'm especially interested nowadays in dividend stocks as a method of generating passive income. Any thoughts?
Dividends might be the easiest way to generate income. After 9-10 years, have you really not gotten involved in them? My favorites are REITs (Real Estate Investment Trusts). They are a type of organization that invests in properties and legally must pay 90% of its profits as dividends. Most of the time, the C-suite managers own quite a few shares. The one I trade the most is NYMT, which focuses on property in NY. It has paid a 15-20% dividend each year for at least the past four years I've been trading them, and the stock price bounces between $5-$7 all the time. Buy at $5, collect dividends, and sell at $7. All the while collecting 15%.
If that sounds too risky, VNQ is the ETF that deals in REITs. They are a very safe investment that will always pay between 3-4%.
What's your strategy?
I have an account that follows a strategy similar to the classic "dividend aristocrats" - mainly consumer staples and industrial conglomerates. Yield is only around 3% although given recent sector rotation the capital gains have been quite good. Interesting point about REITs - I didn't realize yields were so high for some. My last hunt for yield got me into energy MLPs which didn't turn out so well . . .
Yeah that's too bad, especially if they are energy MLPs. I hope you weren't involved in that- could have gotten crushed!
I'm not too familiar with dividend aristocrats. It sounds like the type of blue-chip stock that you invest in for the long-haul. I'm in for a while myself, but being only 25, I can accept more risk to see some real rewards. I've recently gotten into options trading. I am a big fan of covered-calls and cash-covered puts. VERY low risk way to trade. Are you into that at all?