Birchtree's Account Talk

[Birchtree]

I have 13 dividends due today for reinvestment so bring on the lower prices for more shares - it helps to build that dividend income base. The oceanic is dripping red just like yesterday - will the S fund take another $0.16 hit? James Altucher, who has been rather prescient these last two years, is upping the ante on his bullish call, predicting the Dow will hit 20,000 and the S&P will eclipse 2000 before the current rally runs its course. He is absolutely bullish on the economy and the stock market - right up my alley. Noting monetary policy works with a leg, Altucher believes QE2 hasn't yet hit the economy, but will in the coming months.

 

[RealMoneyIssues]

I have 13 dividends due today for reinvestment...

Dang, out of those ~600 stocks, do you get dividends every day? week?

nice

 

[Birchtree]

RealMoney,

Mostly or at least one per day. I don't take any of my dividend income in cash for the moment - they buy me shares that continue to pay and increase their dividends generally yearly. I'm now seeing more stock splits coming my way. The rich get richer because they continue to do things that make them rich.

 

[jpcavin]

RealMoney,

Mostly or at least one per day. I don't take any of my dividend income in cash for the moment - they buy me shares that continue to pay and increase their dividends generally yearly. I'm now seeing more stock splits coming my way. The rich get richer because they continue to do things that make them rich.

Do you reinvest those dividends in the same shares or can you actually use them to purchase different shares of other companies?

 

[RealMoneyIssues]

RealMoney,

Mostly or at least one per day. I don't take any of my dividend income in cash for the moment - they buy me shares that continue to pay and increase their dividends generally yearly. I'm now seeing more stock splits coming my way. The rich get richer because they continue to do things that make them rich.

Very true, but the saying "you have to have money to make money" is so true when you are dealing with stock prices in the $20-40 range (not even talking about Apple or Google...).

When you figure it takes $2000-4000 just to get a 100 share lot... For us normal humans, that is just 4-5 stocks per year; not a dozen a day like you do...

 

[Birchtree]

jp,

My dividends are reinvested in the stocks that pay them - it's the easy way to go since I am a lazy type of investor. Even when I don't have existing flower power buying potential I still get some shares with my dividends. For me the current name of the game is share accumulation - capital gains will come later when I may need cash. RMI there was a time when I started with just one stock - it just takes time to build a base. I got the base now and I'm still adding to it. The S funders are going to feel the precious pain today - we'll see how many will cut and run.

 

[jpcavin]

Yep. That S Fund is taking quite a dip today. Glad I only have 20% invested in it.

 

[Birchtree]

You and me both. I feel better now that the VIX is back into the 17 level. The S fund may give back as much as $0.28 or more.

 

[hotwings]

Looks like some rotation into the financials today..

 

[jpcavin]

Birch

I know you get free trades because of your large balance. What about when you first started out? Was it pricey? I was looking at Fidelity because of their ratings but they charge $7.95 per trade. If I bought shares of 10 different stocks, it would cost me $79.50. That is crazy! How does anyone get started with those prices? And if you just buy one stock, that's not much diversification. How did you get started? And how much did you start out with?

 

[Birchtree]

I pay $4.95 per trade until I put up $25,000 on the banking side which I plan to do real soon. I started with $1,000 back in 1973. Once I put up the $25K I can get 30 free trades per month.

 

[jpcavin]

I pay $4.95 per trade until I put up $25,000 on the banking side which I plan to do real soon. I started with $1,000 back in 1973. Once I put up the $25K I can get 30 free trades per month.

$4.95 is certainly more tolerable. I have an account with BofA. I'll check it out. Does it have good stock research tools?

 

[Birchtree]

My oceanic account has given up $100K in two days and since I asked for it I have no reason to complain - but it still hurts. Oh well, it was a necessary evil to roll back some of the overbought oscillators and RSI values. Now we should be ready to move forward and I'll see if I can break even on the week. That means I'm waiting another week before I can tag that second million dollars from the March '09 lows - I hope #3 comes easier.

 

[JTH]

Standard profit taking, not much else.

Smart money locks gains.
Old money moves to bonds.
Dumb money does what they do best, sell at the bottom.
My current perspective is once everyone is done selling, buyers should step in and resume the uptrend.

 

[jpcavin]

I pay $4.95 per trade until I put up $25,000 on the banking side which I plan to do real soon. I started with $1,000 back in 1973. Once I put up the $25K I can get 30 free trades per month.

You didn't tell me I had to have 1M invested for the $4.95 per trade.

 

[Birchtree]

A 100 point decline is not much when you consider the level we are at. Let'em sell and get out of the way - the ISM is still over 50 and in expansion mode. I'm just going to absorb the pain today like yesterday and the day before - but be careful this could simply be a kangaroo tail with a rebound to come later in the day.

 

[RealMoneyIssues]

A 100 point decline is not much when you consider the level we are at. Let'em sell and get out of the way - the ISM is still over 50 and in expansion mode. I'm just going to absorb the pain today like yesterday and the day before - but be careful this could simply be a kangaroo tail with a rebound to come later in the day.

BT, what is this?

 

[Birchtree]

ISM = Institude for Supply Management said its services index declined to 52.8 last month from 57.3 in March. It's really not important - not even a manufacturing index and is being overplayed to the negative making for better pricing for the institutions. Not to worry.

 

[jpcavin]

I was wondering what International Society of Musicians had to do with anything.

 

[Birchtree]

Let's take a quick look at how money tends to flow and ebb in my oceanic account. You have to be able to absorb these trends to remain invested and build opportunity. Let's see week #107 from the March '09 low had a gain of +149K, week #108 at +89K, week #109 at -45K, week #110 at -48K, week #111 at +98K, week #112 at +73K - and I may be looking at a devaluation for this week. So that's an example of how money flows like the tides. During these weeks I'm always trying to buy more wall flowers and reinvest all my dividend income. I'm reminded that the NYSE daily and weekly A/D line closed at all time highs last week and we'll be testing these highs again real soon. I'm a permabull and staying long and strong.