Stock Trading - Entry 25

After several months of saving over two hundred dollars per year (check out the simple strategy I used here), I have decided to resume my stock trading entries on an upswing. In short, I bought a bunch of stocks that cost well over $1. Which ones and why? Read on bearing in mind this is not financial advice - I am only explaining what is going on in my mind as I build wealth from my own stock portfolio from an initial seed fund of $360.

To buy more stocks, I needed money. A big chunk of that came from selling my GIVX shares after receiving some happy news that they would be bought out at a substantial mark-up.

Could I have waited until late November 2024 to receive the full $1.50? I guess. I ended up selling my shares at three cents less than that, costing me $18 in lost investment earnings. Or did it?

While I was debating whether to wait until November or cash out early at a slight discount, I noticed other changes in my stock watchlist. I noticed several dividend-paying stocks had taken a recent price hit and were beginning to rebound.

For example, Decisive Dividend went from over $11 per share early this year down to under $6 per share recently and were still paying dividends.

This could provide a potential in-road to easily recoup a measly $18 either through dividends, a share price increase, or both. So that begged the question of how likely those positive things would happen.

Decisive Dividend pays dividends and that ability does not seem to have changed, but dividends are not $10 per share, it's a few pennies per share (very standard) and that adds up over time. As for share price increases, it seems the market temporarily punished the company when they released a statement saying one of their divisions had lower than expected sales. They have brought some good folks on board and are continuing to do their thing, so it's no wonder the stock price has already started to rebound. So I bought (around $7 per share).

I also looked at SSC Securities, AirBoss of America, and Vecima Networks which also either had taken a slight price dip recently or are on their way up. All those stocks pay dividends regularly, with some due to pay before the end of 2024. In short, the situation was found to be such that it is very easy for any of these stocks to keep me in the black if I purchased them.

When deciding which of these stocks to buy, I had a choice to make. Do I put my money in just one of them or diversify?

Since they all pay dividends regularly, I would intend to hold for much longer than I would a normal stock. They are also all well-positioned to have steady stock price increases in the medium-term as well. That meant I wouldn't need to buy as many stocks in each to easily stay in the black. I recalled what too many people say: diversify when given the choice. So that's what I did. Will I buy more of each in future? Most likely, depending on stock price and my available funds. In short, I will apply very similar decision-making regarding these few stocks in the next few months when I have more money to invest. (Yes, I am aiming to keep my investment contributions above 10.0% of my employment income.)

In my next article, I am going to delve into an investment subject I haven't gone into with much detail yet - and I am still kicking myself for not delving into it earlier given its importance. Plus I will take a slightly deeper look at my Vecima Networks purchase. Subscribe for free below to become notified right when I publish more articles and to see what I do or don't invest in next. Otherwise, you will have to keep an eye out here where you will find all my entries in my stock trading journey published on Vocal Media.