November dividends are in, i cashed in some of my leveraged bets so i’m on track to increase my dividend income by 50% in 2016. I’m still running with the house’s money on various trades so we’ll see if they end up where i hope in a few months. All in all, that dump in August was a gift, easy to say now but at the time, different right? – terribly cliched but ‘never panic when there is blood in the streets’, sometimes it doesn’t work and sometimes it does like this time.
The dividend income for november is back at a healthy $1109.80, almost the same as last year at $1135.17. The extra income hasn’t kicked in yet but a few records should hopefully be broken soon.
3.5 years into dividend income, that first $4.38 for June in 2012 seems oh so long ago. Momentum is building and this where the exciting stuff happens. My plan has always been to seize the opportunities when they arise and use some big leverage bets in options. If you haven’t done options trading before, this isn’t recommended and my risk tolerance is way higher than most, i learned the hard way over the years but the experience is now paying off. It isn’t for everyone, in August for example, the leverage was working hard against me and i had to make a decision to hold or not – however i didn’t panic, those are the hard decisions that make the difference, good or bad.
All i do at the moment is place a big bet on some ‘extreme’ moves on stocks i feel particularly comfortable about, i learn the patterns, if they fail, they won’t kill me, if they work out, they pay out big – options leverage. I take about 80% of that profit pile it back into blue chips, emerging markets, asia etc and tuck that away. I then roll the remaining 20% into more opportunities when they arise. The keyword here is ‘when‘. Patience is critical. These may only happen 2-3 times in a year, maybe less…august was one of those times and if you get it right you can make a ton relatively easily when the market mis-prices good stocks. This builds a nice cushion and stops me from being worried if the bet fails. More income is on the cards if the remaining positions workout so fingers crossed.
Stay focused and positive, there are always opportunities out there.