Dividends4Life: Optimizing Trades In Dividend Stocks

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Optimizing Trades In Dividend Stocks

Posted by D4L | Sunday, September 29, 2013 | | 1 comments »

Does it make sense to try optimizing trades in sleepy stocks such as dividend stocks? If you want to add precious points to your portfolio performance you may want to sharpen your trading skills in identifying good entry and exit points for the stocks in your portfolio. How do you do that? I once sat down with a well-known money manager who oversaw a portfolio of dividend stocks. He was an expert in fundamental analysis, but knew nothing of technical analysis. He wanted to buy a million shares of a high-dividend-paying stock and was afraid his order would move the market. His trading desk was top notch and knew how to work an order.

I showed him all the supply on the chart and told him his order would not move the market. He executed the order, price did not budge on the buy, and, in fact, continued lower because of all the supply in the market. Obviously you don't have to be an expert technician. But you do have to know that charts will usually help, and if you are a portfolio manager, you may want to consult with a technician on your trading desk.

Source: Market Watch

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  1. Anonymous // September 30, 2013 at 11:44 AM

    I like to have enough to invest to keep my costs below 60 basis points.

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