Wealth Builder Portfolios
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This is the 5 Star Trading Portfolio. The positions in this portfolio can be held long term or sold if I feel the technical analysis or earning reports are indicating the stock might take a long term drop. The stock will be automatically sold if the Trailing Stop Loss price is hit.
Each position will have a Trailing Stop Loss Order placed on them. On purchase they will get a 20% Trailing Stop placed on them. When the stock is up 10% I will change it to a 25% Trailing Stop. If I feel the stock is nearing resistance, I will try to protect the profits and change to a 10% or 15% Trailing Stop.
Stock Reports
This is the Pillar of Strength Portfolio. The positions in this portfolio are meant to be held long term. These companies are the best of the best.
Each position in the Pillar of Strength Portfolio will have a “Buy” rating. They will only lose their “Buy” rating if their quarterly earning report is 20% below analyst estimates, they receive multiple down grades, or I feel their business model has changed for the worse in some fundamental way and the company no longer fits into my stock buying criteria. If any of these happen I’ll give the position a “Sell” rating, or I’ll place a “Hold” rating and a Trailing stop order will be placed to protect gains.
This is the Double Dipping Portfolio. The positions in this portfolio are meant to be held long term. These are very strong stocks with high dividends. Plus they have decent premiums for selling Covered Calls. These stocks will only be sold if they discontinue or reduce their dividend. Or they hit their Trailing Stop Loss price.
The positions in this portfolio will grow in the number of shares and hopefully in stock price. All dividends will be paid in shares, not cash. Also, I’ll sell Covered Calls and shares will be bought with the premiums. These positions will grow with no additional capital investment. As the position grows in share numbers the dividends will become larger. Since Covered Calls will be sold on a weekly or monthly basis this portfolio will require the most management.
*Shares Owned – These shares are the original shares, plus shares paid in dividends and bought with premiums.
In the Double Dipping Portfolio I’ll indicate the number of shares purchased so we can watch the share amount grow from dividend payment and shares bought from premium payments.
These stocks will get a 20% Trailing Stop Loss order at purchase. If the stock goes up 10% the Trailing Stop will be moved to 25%. These stocks have a long track record of paying and increasing their dividends.
Stock Transactions
This is the Stock Alternative Portfolio. The positions in this portfolio will be LEAPS options. My goal is to have stocks that have 2 year LEAPS options. If 2 year LEAPS are not available they will be 1 year LEAPS options.
The “Stock Price” is the price of the stock when the options was bought.
Each position will have a 50% Trailing Stop Loss Order placed on them from purchase. All position will be sold if I’m still long the position when there’s less than 6 months remaining to the options contracts. OR, the Trailing Stop will be changed to a very tight percent, such as 10% or 5%. This will protect our gains against Time Decay.
All flexible numbers will be updated over the weekends