Tuesday, December 29, 2009

Not much change

I didn't really do anything to the account and nothing has changed since I last posted. I just wanted to stay in touch.

Actually, I came real close to having another sale, as the market has been in a fairly steady climb this month. I expect my next sale to be some of the Merck. It has the highest total value, and it's up over 50% from it's average starting value (basis).

Sometimes, the toughest part of this investing method is choosing which stock to sell. It's easy if you are using a mutual fund, which could be a choice if you want to be very conservative, but I like the few individual stocks because of the inherent volatility it gives you. That's what drives this method, if you hadn't guessed. The rub comes in where you have plenty of volatility, but stocks that aren't solid enough. You can end up chasing your account down into oblivion. The rules of maintaining good dividend-producing stocks keeps that problem at bay automatically. I love automation in a system. We had some real fallout with this method last year, but I don't see that happening again for a very long time, and if the rules of trading are followed, (ahem, my bad :\ ) the system would have you in great shape anyway, in the end. I'll report next month after the review date, which will be the 25th. Happy New Year, everyone!

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