Lots of People on Twitter etc. are extremely helpful with Tweeting out Stocks they have been buying and selling - which can be great for drawing attention to New Ideas of Stocks to Invest in and also lets People reading the Tweets get an idea of the sort of Approach a particular Tweeter follows. I always say that I can get a very good insight on whether or not a particular person makes Money simply by looking at the Stocks they Tweet about. This really is one of the many benefits I find from being extremely fortunate to be able to interact with so many helpful and collaborative Investors / Traders and it has enabled me to meet a whole new bunch of top quality Mates - and this has without doubt boosted my own never-ending Learning Process.
As always with these Blog Series, I have a rough idea of how they will pan out when I start on the early Blogs but as they develop I get to a point where I decide that it deserves some more Parts - hence you will note this is Part 5 of 7 and the next two will be looking at each of the Sector Classifications and highlighting particular Stocks that might be suitable for an Income Portfolio. This extension of the Series partly comes about from the size of each Part and the logical flow but it is also driven by my desire to ensure that at least 1 Part gets released each Week - I am sure this is what Readers want to see and also I am sure you appreciate that it takes me a while to bash them out.
How to Find Suitable Dividend Stocks
I guess there are several routes to actually finding the Stocks you want to shove in your Income Portfolio but I will just mention 2 basic methods here which are very much how I tend to go about finding them:
This blog has come about as a direct result of Wheelie’s Summer Bash which was on Saturday 23rd September when a load of us met up in a Boozer local to me. If you take notice of my Twitter Feed, you may have spotted that at the End of each Day (usually around 5pm to 7pm ish) I do a Report via a Tweet of how my Portfolio Value has changed during the Day and the larger ‘DOWN’ and ‘UP’ movements of that day for the relevant Stocks. On a Friday I report the numbers for the Day but I also show the Weekly Result for my UK Portfolio and Spreadbets.
On a few occasions over the last 3 years I have been asked by a Twitter Follower what the Numbers actually mean and I have given a fairly full response on the whole I think but obviously the 140 Character limitations of Tweets probably leaves many People just as bemused as before I tried to answer !!
Finally I have found some time to start on this Blog. I have had this in my mind for many months but not really had a ‘window’ of time where I can really free myself up from the hustle and bustle of life and enable an atmosphere that is peaceful and conducive to the Deep Thinking I suspect this Blog will demand. You could say I have “Cut out the Noise“……
Humans are nutty creatures. I distinctly remember doing a ‘Stock Buy Rationale’ Blog recently where I said something like “I’ve done loads of the Educational type Blogs recently and I want to scribble something about a Stock and do some in-depth research” - well now I am fed up with doing stuff on Stocks and I want to do an Educational tome !! (there is of course an implicit assumption in this paragraph that WheelieDealer actually is human - it is debatable. He is certainly part R2D2.…..)
I am totally on a roll tonight and the words are just flowing forth from the Wheelie Fountain - and I haven’t even been near the Old Speckled Chicken !!
I just wrote a really good first draft of the blog about ‘Is it possible to be too Cautious’ (which should appear on the Website in coming weeks) and when I looked at the clock it was still only 11pm and I had bashed that one out in a little over an hour - so I decided that I might as well crack on with this one because it is another Blog that has been on my brain for some time and while I am spewing out words like this I might as well take advantage of it !!
I remember after doing one of the early Podcasts with Justin, the question arose about “how do you manage so many Stocks?” - I can’t actually remember if Justin asked me this or whether it came about from a Reader/Follower afterwards but that doesn’t matter - the point is that I don’t think I have ever actually got around to answering it and this Blog hopefully will put that major deficiency to rights. On top of that, it actually fits in a treat with some Draft Blogs I am working on about ‘Cutting out Noise’ and my original intention was to include it as a Part of that Blog Series but then I decided it was so important that it deserves its own Blog. So here it is…….
Guest Blog - Peer To Peer Lending - worthy of consideration in an environment of low interest rates and rich stockmarket valuations?
My mate Phil Sloan has very kindly contributed the Guest Blog underneath to explain in simple terms to us all the Ins and Outs of Peer-to-Peer stuff. As he says in the text, he was looking for alternative forms of Income with Bonds and suchlike being such poor yielders and this drove him to do a huge amount of digging into P2P and we can now benefit from his endeavours.
If you have been following me on Twitter and partaking of the Website for some time you will know that I am pretty cautious on the whole P2P ‘thing’ with my main reservation being that most of the Providers sprung up after the 2008 Credit Crunch and we are yet to see how they will behave in a Recession and/or tougher times (having said that, I have just learnt from Phil‘s text that Zopa actually kicked off in 2005). For this reason, I would take the view that it is best to stick to the more well-known, established, names and in-depth research and investigation is essential. Of course it makes good sense also to limit exposure to this area and probably any more than 15-20% or so of a Portfolio might be taking on quite a bit of Risk - at least until you’re used to how it all works and after having more experience of how these things work over the business cycle. Phil has a good section on the Risk side of things and spreading things across Platforms etc.
Whilst chatting away with Ian Smith (@GrindertraderUK) at the Master Investor Show, somehow we got onto the subject of Level2 and Ian casually slipped into the conversation something along the lines of saying Level2 only gives you pretty much the same timing information that you can get by reading small timeframe Candlesticks - I got the impression 15 minute or 30 minute Candles would do the trick.
It’s Saturday night and I am in one of those “I must write a blog, but don’t want a difficult one to write” moods - so I will just try and scribble about the methods I use to find Stocks initially, before they go through further Research. I am very much a person who thinks ahead and always want to be on the ball - it stops me feeling stressed and helps me keep nice and calm. Being stressed is bad state for successful Investing.
This planning ahead means I always want a good ‘Pipeline’ of Blogs in a pretty good state of Draft, stretching out several weeks. That way, if Life gets in the way, I can still keep a good flow of Blogs for the Website.
Whenever I trip over a New Stock that might have potential, I very quickly do a sort of ‘Triage’ on it where I can rule it In or Out for further analysis in probably under 2 minutes. This process will be the subject of another Blog which I have written in Draft and will be out soon.
THIS IS NOT A TIP. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITES.
I sold off some IGG yesterday - but have kept a chunk in my Income Portfolio as I think it is a great Stock long term but seems Toppy for now and I want to build Cash and reduce my Exposure in the early months of this year as we head towards the uncertain General Election. This period of the Year is always bad and the Election will give the ‘Media’ plenty of time to get the Fear of God into Investors and have them panicking for the Exits.
“Sell in May and go away” and all that………..
Today I want to talk indirectly about Bias. I have named this Blog “Beware of Opinion” and I have planned all along to write about the dangers of ‘Opinion’ but now I have actually started prodding the keyboard, I realise that I am really talking about Bias.
I am not sure where this is going to go. You might think I have a Structure to my Blogs and I guess I do to an extent. But I have been thinking this Blog over for several days and I sat in the Kitchen with a blank sheet of A4 a few minutes ago and I just scribbled down, in no particular order, the points I wanted to cover.
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