EOM Q&A: Garden Growing and 2017 Q3 DIV. Report Q&A II 10.04.17
Before answering–I need to first explain my Garden Growing strategy.
Garden Growing Strategy
1. Select high-paying dividend securities-use the Simple Simon Buy System
2. Consider candidates from the All-Star and CEF VIP Lists
3. Use incremental buying-scale into positions
4. Determine downside price-percent targets in case the price heads south
5. The goal is share growth-increase shares with dividend reinvestment
An example–if using $10,000, purchase equal amounts of nine high-paying funds. Have the dividends reinvested in additional shares. See how long it takes to double the amount of shares.
When Gardens mature, you have the option of:
2. Harvesting entire gardens and converting into cash
3. Harvesting the dividend yields
If closer to or in retirement, gardens expiring 2-3 years out need to be more conservative than those expiring 5-6-7+ years out.
1. Before buying, research which indicators the Institutions are using for buy/sell signals.
2. Use alerts/triggers once a price target is hit. Then use the appropriate system before buying/selling.
3. Use stop orders, either mental or a strategy stop. Protect your downside-always.
4. Use your “Rules of the Road” parameters for ALL securities. No more than X% of the total account on one security.
5. Paper trade all systems until profitable. Feel comfortable with the strategy and approach.
6. Monitor News events-dividend increases or reductions.
7. Keep it simple.
Tomorrow, I begin to answer your questions on the Q3 High Dividend candidates.
Enjoy your week!
David O. England