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Thursday, December 18, 2014

Back to Forex trading

Back in October 2011 I stopped trading Forex with real money after more than a year with mixed results and a lot of frustration by the end, which I described in the I have lost my ass article. This blog originally started as a Forex blog. That was the root. That was the essence. That was the only thing I talked about.

Believe it or not, in retrospective I'm glad the Forex fiasco happened as it forced me to follow other paths and learn about other markets. My Forex debacle led me to study and understand Options, develop a system, be profitable. Now that's a weapon on my side for the rest of my life. Changing from one trading vehicle to another inevitably made me wonder: "Why not another one?". And that's how I ventured into Dividend Growth Investing, a strategy with great merits in my opinion. As a result, today this site is about Options, Dividend Growth Investing and Forex, all that thanks to my initial Forex disaster, which in the end made me a more complete trader who understands different markets and sees how everything is interconnected.

Saturday, December 13, 2014

Weekend Portfolio Analysis (December 13, 2014)

The SPX index went from 2074.84 down to 2002.33 this week for a 3.49% loss. The S&P is now up 8.2% for the year. The Dow Jones is up 4.4% and the Russell index is down 1.5% year to date.

Friday, December 12, 2014

SPX Jan 1825/1820 and Dec 1915/1910 Credit Put spreads

This was my activity today:

Sell 4 SPX Jan 1825 Put @7.50
Buy 4 SPX Jan 1820 Put @7.20
Credit: 0.30  ($120 total)
Max risk: 4.70
Days to expiration: 35

Monday, December 8, 2014

A basic Dividend Growth oriented Canadian Investment Portfolio

I've recently been analyzing the performance of several, mature Canadian companies with a huge presence in the Canadian economy and therefore in people lives up here. I chose companies from different sectors for some diversification. I wanted to only analyze large caps, dividend payers and growers. I also didn't want to make this a never ending series about an overwhelming collection of companies. I wanted to keep it simple and illustrate the power of reinvested dividends, dividends that grow above inflation every year combined with capital gains. So, only nine companies in the end, which in my opinion could make up a simple long term investment portfolio with some degree of diversification with the goal of cash flow generation in mind. The companies analyzed were, in this order:

Saturday, November 22, 2014

Weekend Portfolio Analysis (November 22, 2014)

All right, the time has come to admit defeat. Yesterday was November expiration, my worst month ever. With my current trading style, I can make an adjustment to one of my spreads and still pull off a positive month. I can generally make two adjustments in the cycle and still pull off a break even month. I start losing money if I'm forced to make a third adjustment in the cycle. Well, in November I had to close 4 positions for a loss. With the added sin that I didn't make the last adjustment. I just closed my fourth loser without entering that last revenge trade, which would have been a winner. So, this exaggerated the losses a little bit in the end. I did enter my fifth order, it just never got filled for the price I wanted.

Tuesday, November 18, 2014

Invest and retire before you die - TELUS Corporation (T)

Have you ever wondered how an investment in a boring, blue chip company that pays dividends to share holders and periodically grows those dividends performs over long periods of time?

Welcome to the Invest and retire before you die series, where I explore the merits of long term investments in Canadian blue chip companies that pay and grow their dividends every year. I have seen these studies for American companies in the past and figured it would be nice for people to find something equivalent for Canadian ones. Notice that many Canadian blue chips companies are also listed in American exchanges and are therefore easily available to US investors.

If you are interested in other companies already discussed as part of this series, you can check out:
Invest and retire before you die - The Bank of Nova Scotia (BNS)
Invest and retire before you die - Emera Inc (EMA)
Invest and retire before you die - RioCan Real Estate (REI.UN)
Invest and retire before you die - Potash Corp. of Saskatchewan (POT)
Invest and retire before you die - Enbridge (ENB)
Invest and retire before you die - TransCanada Corporation (TRP)
Invest and retire before you die - Suncor Energy (SU)
Invest and retire before you die - Toronto-Dominion Bank (TD) 

Sunday, November 16, 2014

Weekend Portfolio Analysis (November 16, 2014)

Folks! I'm back. After two weekends without portfolio analysis. I have to say the trip to Florida was awesome. It gets harder and harder to come back up every time I go down there. Funny how I used to hate that weather during my days in Cuba and how much I love it and miss it now.