Wednesday, April 20, 2016

Recent Sale: SPXL

4/20/16 - Today I sold 12 shares of SPXL (Direxion Large Cap Bull 3X Shares ETF) for a total gain of $78.60.  This brings cash of $1,077 back into my account to invest in a strong dividend paying company.  If you have read my About Me and Goals pages, you will see that one of my goals is to clean up my portfolio and build a "strong core portfolio."  I saw an opportunity here to take some profits as the market has recovered significantly.

This ETF has brought me some gains in the past as it essentially seeks to move 300% of the performance of the S&P 500 Index.  Clearly, it has had a great run recently, but I want to take this opportunity to reinvest this money into a dividend paying company.  This is not to say I will not invest in this ETF again because I believe that it is a great tool, but as for building a strong core portfolio this is an important milestone for me.  The market has recovered greatly, but I believe some company stock have not rallied with the others.  I see some opportunity in the financial sector and hope to deploy this money there.  Unfortunately, I currently have a 3 day hold on Robinhood.  Cannot wait to get Robinhood instant!

If you want to learn more about the Robinhood platform.  Please see this great article by Wallet Squirrel.

Thanks for reading!


Have you ever invested in one of these leveraged funds?  What companies are on your watch list?

Photo Credit: FreeDigitalPhotos.net by suphakit73

I'm not an investment professional or a licensed financial advisor. This blog represents my personal views and decisions, which may not be appropriate for other investors. Please use common sense or consult with an investment professional before investing your money. I am not responsible for the outcomes of your decisions, nor am I responsible for the comments posted by readers or the contents of any linked websites. This blog should viewed for educational or entertainment purposes only.

4 comments:

  1. So many good moves here Dividend Mogul! It's great to hear that you're building a "strong core portfolio", especially investing that cash into dividend stocks. Obviously I'm a big fan of dividend stocks, but it's such a nice feeling receiving cash in the form of dividends each month without having to sell.

    Plus it's great to see you're using Robinhood, I hope you're having a good experience with it. The $0 is incredibly nice, but yea the three day hold SUCKS! Currently my portfolio is taking a hit the last 2 days with the market, maybe that three day will force you to buy when the market is even lower =) We can hope.

    PS. Thanks for the call out! I can't tell you how awesome that is to be mentioned on your blog!

    Thanks,
    Andrew

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    1. Andrew-

      No problem - I think you did a great job with explaining what it is and of course those visuals cannot be beat! Look forward to moving on in this journey of collecting dividend with you!

      TDM

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  2. I like the move Mogul. If it doesn't fit your portfolio anymore, then get it out of there! It served its purposes for you, you collected some gains, and bam! What monthly dividend stocks are you considering? Realty Income maybe?

    Great job! Keep up the great work.

    Bert

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    1. Thanks Bert!

      I was actually looking at WFC, AMGN, and GILD. I think they are all high quality companies despite paying between 1-3% dividends. I should definitely look for some high yield stocks soon as well.

      Thanks for stopping by!
      TDM

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