Is Trading on Margin Safe?

Trading on margin is safe. As safe as trading in the stock market ever is. You have risk of course. Risk of losing all that you have borrowed plus any interest or fee incurred for using margin. Investors hedge the risk of trading in the open market in a lot ways. Options, portfolio diversification, position sizing, researching fundamentals, and watching technical signals are all ways for traders to reduce risk and improve chance of profit. None of this changes when trading on margin.

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Dividend Builder – A Year of Results

My Dividend Builder strategy is now a year old and I am eager to share my results and a little of what I have learned. You can read about the beginnings of this strategy in my post The Birth of Dividend Builder – A New Strategy.

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2020: Week 4

I got within a few dollars of my target on both of my Iron Condors this week. I was tempted to close one of them anyway, but I stuck to the plan. Time decay is on my side, yes it is! I think my Iron Condor in EEM might have hit my target if the market had kept going the way it was for most of the week. Friday, things got a little squirrelly. My guess the market was reacting to either the impeachment hearings, the Corona virus outbreak, or both. I might be looking to make another quick trade if the major indexes are all still down when Monday rolls around. Continue reading “2020: Week 4”

Starting Over With $150

After four months that felt like four years, I’ve started live trading again. It’s a new year, and I’m excited to start fresh on this new leg of my trading journey. I blew up my original account at the end of August, 2019. As of the beginning of the year 2020, I’m starting over with a whopping initial investment of $150. Thank you Robinhood for making such craziness possible. I know all the conventional wisdom says I should have a minimum of $3,000 to start. (And realistically, more like $5,000.) I’ll get there. However, I wanted to get my toes wet using the new strategy I’ve been paper trading for the last four months. 

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The Birth of Dividend Builder – A New Strategy

James J. Hill, founder of the Great Northern Railway, earned the nickname of “Empire Builder” as he began buying out struggling railroads and uniting them into a booming transcontinental network. Hill analyzed down-and-out railroads to suss out hidden value. Once he identified potential, he bought the railroad at the down-and-out price and then unleashed his logistical genius to build the business into a money-maker on rails. His legacy lives on in the iconic Empire Builder route, which still runs from Chicago to Seattle.

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