Dave’s Trading Diary: Dividends, Dividends, Dividends, A “Baptism Of Fire” and Current Buys
This excerpt from the trading diary is for educational purposes only and is not to be interpreted as trading or investment advice. See Terms Of Use here.
See The Trading Diary Here | See Live ASX 200 Prices, Charts And Top Movers Here
Dividends, dividends, dividends. Last week I noted that a lot of the stocks in the trading diary had dividends coming up in March. Well I think it ended up being around 8 – 10 stocks or around a third of the current portfolio that went Ex -Dividend this week.
Half year yields ranged from 1-2% to 5% of the buy price. Not bad.
Often when a stock does go Ex-Dividend the price of that stock will fall (after having priced in the dividend amount previously). So it is interesting to note that the Win Percentage of the Diary is still sitting around 80%. Not bad again.
Last week we noted that the common long term win percentage for this strategy is around 60%, so still a lot of room to move here. In the mean time, these dividends will bring a lot of happiness to the account. And I do love happiness.
A Baptism Of Fire
There is no point in validating a trading system during the good times only. That is why it is good to be looking at these system signals and how they perform in the market during this time. The overall index (All Ordinaries) is still flat and has been for 7 months. Meanwhile 80% of stocks in the Trading Diary are rising, plus dividends, simply using a simple trend following approach. If I was sticking to my sector filter (harsh rap on my wrist for not doing so) it would be doing even better.  There is still uncertainty about Europe, and now uncertainty about China. In fact, I think there will always be uncertainty if you listen to the news because honestly they have no idea what is really going on, and they have to sell advertising space and make a dollar. Uncertainty sells, at least for them.
If I am going to be uncertain about these things, I must still be certain in my trading plan, and still follow the signals. This is correct trading, and is the only way to stock market happiness and success.
Additional Trading Diary Signals This Week
While I am at my current maximum risk, I am still getting signals according to the trading plan rules. Signals over the last few weeks have included FMG (Fortescue Metals), AUN (Austar Ltd), WTF (Wotif) and TRS (The Reject Shop). I have not taken these signals.
Other signals coming up include AUT (Aurora Oil) and STO (Santos). It seems the oil price is moving oil stocks too, although how long this will last no one can tell.
Really if I were to be taking new signals, I would prefer to be doing it in the Industrials Sector, which is currently well outperforming the All Ordinaries.
Otherwise it is settling in with a good book – Nick Radge’s new book “Unholy Grails” has just been released. I’ll review it once I’ve finished it, but so far I can say it is absolutely brilliant and worth its weight in Gold.
Happy trending until next week!
Dave McLachlan
.
. If you enjoyed this, subscribe and get the latest updates for free:
March 11, 2012
Tags: ASX, online trading, trading diary Posted in: Dave's Trading Diary
Leave a Reply