So, I’m trying out a new trading strategy from a new service where I pay for advice.

I like stock trading but have no desire to learn everything I need to know and then track things daily, so I’ve been looking for a good service.

I have learned and it’s worked out to go for dividend stocks that not only hopefully go up but when down pay dividends that I reinvest.

So, with that in mind I have picked a few that while paying a dividend are down enough to show losses of big money.

So, this is the change I chose.

Trailing stops:

I but a stock and right away set a trailing stop. An order to sell the stock if it goes down below a certain price. So, if I buy a stock for $100, I can set a trailing stop for $95 to prevent losing too much money if the pick was wrong and it goes down. I have let many stocks go down and then must wait for them to recover or take the loss. Some have never recovered.

So, the next step is a TRAILING STOP LOSS:

Buy at 100 and set a trailing stop at either a % or $. I chose $5.

Why is this different. If I buy at $100 the trailing stop of $5 would put the sell price at $95. The difference is if the price rises to $110 then the stop price becomes $105 and it keeps adjusting upward.

Sounds good and is a good strategy but it has an issue.

I bought CUBE at 34.23 and set the trailing stop for $5 so it starting at $29.23

10/27/2023  11:47:37                              Bought 100 CUBE @ 34.2399

It paid a nice dividend, and I was happy as the price was at $44.62 moving the stop price to$39.62

01/16/2024  10:08:44                              ORDINARY DIVIDEND (CUBE)                            51.00

01/16/2024  10:09:29                              Bought 1.143 CUBE @ 44.6228                         -51.00

At some time the price went above $47.90 and then took a dip of over $5. So that triggered the sell stop at $42.90

01/31/2024  15:05:05                              Sold 100 CUBE @ 42.9101                                    4,290.96

With the sale I made $867 and received 1.143 shares. Not a bad deal.

The issue is that the stock is still a good buy for the long term but today after the sell triggered it has risen to $43.71. So, if I want to buy for the long term I will have to pay more than I got for the sale.

So, do I adjust my plan and get rid of the trailing stops and risk the losses from a falling stock?

No, the trailing stock sale is a good strategy to protect me from losses, if in the case it triggers and rises, I decided that I’ll take the profits and move on to another stock.

Second guessing a strategy that is profitable would be stupid. I have had this happen for 2 stocks so far. I have yet to have it save me from a loser but it’s the stock market I’m sure it will.

For now, I am going to keep with the strategy and hope for more gains and less losses.

Picking good dividend stocks has been a winner. See my article on this at:

https://www.publish0x.com/wealth-concepts/can-you-be-profitable-with-dividend-reinvestment-my-example-xvzpeqn

http://cointiply.com/r/2LG6E cointiply faucet link, only one I like so far