The final month of the year (though writing this in 2017). I am going to use this time to look at gains / losses and the way ahead in trading . However, first I will start by going over the fun stuff first…divis!

  • Kroger (KR) = $42
  • Starbucks (SBUX) = $38
  • BP = $154.70
  • Total December 2016 divis = 234.70  (132.95% YoY increase from Dec 2015 divis)
  • Total divis in 2016 = $2,109.775 (251.09% YoY increase from 2015 divis)

I received divis from two stocks (KR / SBUX) that got sold for profits along with BP that I have been an owned in since I started this dividend adventure.

I hit my goals for 2016 and am now going to do what I’m not supposed to do: Make less concrete goals for 2017.

The Three P’s

Preparation: I think of this in the physical and mental aspects. I plan to continue using running and reading as the primary methods to achieve this. I am, however, looking to spend more time reviewing my trades and studying different indicators / methods for possible implementation. End state: Run more, Read more, and Review more.

Planning: I have been reading more trading books as opposed to investing books (read retirement books like “Retired Inspired” too) of late.  Books like “The Complete Turtle Trader” and “New Market Wizards” have been a couple of my favorite. I am looking to have a solid plan by the end (hopefully before) to figure out my OWN method. I will need to dabble with others then mix and match to see what fits me. Before writing this, I just read from a book called “The Market Whisperer” (yes, sounds sketchy but actually has good information in it. Many sketchy ones are just that…TERRIBLE.) about using Bollinger bands with the 100 stocks in the Nasdaq. Basically, you buy as soon as it goes below the low band and either sell when it goes above the band again or sell after 20 days. Sounds too easy and i’m sure it is. The time frame it was back tested for gave good results. However, the book is dated and the method may or may not work. If a rube like me can read and implement it then don’t you think many others could do the same? This probably makes the method invalid. Wouldn’t it be nice to have a simple answer to trading? I think it’d take the intrigue away and also a system also has to be able to adapt because if many people start to use the same thing then it loses its ability. Waves, bands, RSI (Relative Strength Index), and MAs (Moving Averages) are all around me, but I still don’t have a plan.

I do have a few money management techniques that I am currently using. Three to be exact:

  1. Only risk 1% of account value in any given trade. This helps set position size and stop.
  2. Limit myself to three trades at a time. (Breaking this one because I’m kind of on a trading hiatus. Granted, I do consider SJM, VOD, GIS, and PFE to be ‘trades’)
  3. Use stops, use stops, USE STOPS. I must admit that I didn’t place my stops on SJM, VOD, GIS, and PFE until writing this article. I reprimanded myself. (No stops on NAT or BP because I have specific price goals and will collect divi along the way.)

Patience: In “New Market Wizards” a father told his 11 year old son that had just purchased a stock that the stock has been around longer than you so it does not have to go up just because you bought it. That 11 year old, as you could probably guess, did become a very successful trader. Almost all of the great traders from the book said that patience (along with discipline) were key for success. It could probably be argued that patience is one of the highest virtues. I do not have the patience for that though.

I hope to have the patience to continue learning and to persevere against the setbacks that undoubtedly await me. I want the patience to admit that I was wrong and move on. I do not wish to dwell on past failures. Also, I do not want the dark side of patience, stubbornness to keep me from admitting that I was wrong on a position.  Finally, I want to have patience in all areas of my life and not just trading.

 

A different flavor of goals for the year but with the same end in mind of improving myself. I hope you had a great 2016 and an even better 2017.

 

Take Care,

JT

“Journeyman Trader”

 

 

 

I ended up getting stopped out of KTOS at $7.40 which locked in a small gain of $229.76 after commissions. I wanted to be fully invested so I went looking for a blue chip company with a stable history. I ended up settling on General Mills Inc (GIS).

  • Bought 135 shares of General Mills with a cost basis of $62.41 per share
  • General pays out $1.92 annually ($0.48 per quarter)
  • Brings annual divi total to $4,617.20

 

General Mills, Inc. (GIS) is a leading global manufacturer and marketer of consumer food products. Its business operates in three segments: U.S. Retail, International, and Bakeries and Foodservice. Its products are manufactured in 15 countries and sold in over 100 countries worldwide. The company owns several brands,including Cheerios, Progresso Soup, Hamburger Helper, and Fruit Roll-Ups.General Mills was established in 1866 and is headquartered Minneapolis, Minnesota.  (source: dividend.com)

GIS Divi Growth:

Payout Amount Calendar Year Annual Growth
$1.7300 2015 7.5%
$1.6100 2014 13.4%
$1.4200 2013 11.8%
$1.2700 2012 8.5%
$1.1700 2011 11.4%
$1.0500 2010 16.7%
$0.9000 2009 9.1%
$0.8250 2008 8.6%
$0.7600 2007 10.1%
$0.6900 2006 7.8%

(source: dividend.com)

It closed at $63.87 on 12/12/2016. I was going to write more about it but am feeling the time squeeze so just wanted to get the buy out there since timing is very important when making a purchase. I believe it is a pretty safe divi stock at a decent price.

Take Care,

 

JT