Re: Dividend, Share Price. Is there a connection?
G'day sam21poddy,
Every dividend trade is definitely not a winner, so you need to identify when to pull the plug. You must have a stoploss in place & act on it before you get in too deep. I use a trailing stop of 3%, & have a minimum of 10 different stocks, & a maximum of 15 (there may be more than 1 parcel of the same stock).
I grade my stocks, with the very best having no greater than 15% of total portfolio, others may be 5% to 15%. So if a (15%) stock hits its stoploss, this is only 0.45% of total portfolio, therefore there is room for some discretion if required, & not much damage can be done. What I am getting at is you need to have some risk management in place, not only just a stoploss, so you need to adjust your trade size accordingly. When you have 10 to 15 stocks, they are in different parts of the strategy cycle, so there ias always something happening & you don't become bored either.
Don't be alarmed at the position you have found yourself in as most traders have been there.....especially me over the years. These are the best lessons you can have, its called pocketloss. I don't stray from my rules very much now, but now & again I do because I think I know better than the market....big mistake & almost always come undone, & I should know better.
The problem this leaves you with is, that your money is not going anywhere atm...stagnant. I find that if found in this situation, look at each stock individually, & say would I buy it at the price it is atm. If the answer is no, then sell it immediately, .....you could sell it for whatever it is worth now, & be in a stock going in the right direction.
If yes, then keep holding it as though you have just bought it putting stops into place.
This is not advice, I just want to give you something to think about, the decision is yours.
rozella