Tag Archives: Trader

What type of trader are you?

23 Sep

Spend a few minutes to do this online test and get a detailed report one of the possible 15 types of trader that you will be classified as:

www.tharptradertest.com

At the end of the test, it will reveal what type of trader you are and a full 7 page report that evaluates psychological tendencies relating to how you gather, store, comprehend and act upon information and input.

Unfortunately, I fall in the 9/15 category where I have a more difficult time becoming successful in the trading arena.  Here’s a quick analysis of myself:

  • As a socially responsible trader, I tend to be quick at seeing the possibilities, meaning that I can easily find opportunities in the market.  I am driven by my values and committed to them.  I tend to be adaptable and flexible and accepting of what happens unless it threatens one of my values.
  • One of my trading strengths:  Flexible enough to look for multiple systems and blend them to achieve your trading experiences.
  • One of my trading challenges:  Without an understanding of how to evaluate systems, I may persist in the market and trading beliefs despite evidence to the contrary.

Just at the beginning stages of this new book that I picked up from the library:  Super Trader, by Van K Tharp.  The first section is working on yourself. Are you committed, do you treat trading as a business or recreational?  Are you analytical or emotional trader?  If you work hard and do your best, results will come in stride.  To be successful in life is to take matters into your own hand.  Everything is doable if you put your mind to it.  Practice makes perfect is the saying.

Often, I get distracted and tend to put things off.  This time around I will follow through and finish what I have started to become more informed and well rounded person as a trader.

Ultimate Goal

4 Jul

Hypothetically speaking, can one build a stock portfolio that is sustainable to churn out $20,000 per year in distribution/dividends to stop working and live off the dividends from your stocks?

I’ve been leisurely reading Derek Foster’s “Stop Working, Here’s How You Can!”  At the end of his book, he constructed a sample stock  portfolio where he collects $18,845 per year in distribution/dividends deprived from his original investment cost of $103,500.

Can I replicate his method in this day and age?

Let’s say I just invested the whole $103,500 into one of my high yielding stocks in today’s stock prices:

BPF.UN– $103,500/17.47= 5924 shares @ 1.20= $7108.80/yr
BMO– $103,500/57.77= 1791 shares @ 2.80= $5014.80/yr
KEG.UN– $103,500/14.04= 7372 shares @ 0.96= $7077.12/yr
IPL.UN– $103,500/19.27= 5371 shares @ 1.08= $5800.68/yr
CHE.UN– $103,500/15.85= 6530 shares @ 1.20= $7836.00/yr

Even if I did find a cheaper stock like PGF which is yielding about 12.79% at the moment.  I still wouldn’t be able to make it to my $18,845/yr goal:

PGF– $103,500/6.57= 15753 shares @ 0.84= $13232.52/yr

This just means I have to construct at least a $250K plus portfolio to realistically support the $20k per year in distributions/dividends.  That is a big feat to accomplish.  Currently, I am collecting around $275 per month.  I have a long ways to go before I hit my ultimate goal of working as a sole investor/trader.

Alternatively, trading stocks is more lucrative if you know how to time your trades to the tee.  One can easily reap the rewards faster with the daily swings of the market…

I’ve been inactive for the past month.  It’s time for me to shake off the bad trades in May and start anew!