The method used in this is simply buy low, sell high. Which is some times easier said than done. The purpose is to earn shares of stock that pay dividends. We are not out to get ritch we are building a paycheck for the rest of our lives, while protecting our original investment capitol as much as possible.
We all make mistakes. I made a mistake in Corning and Honda. I purchased on the way up where both stocks immediately fell afterwords. No worries with a little money and patients you can dig your self out of holes. Being down in both stocks I purchased more stock at the lower price. Each time you do this the buy price is averaged out among all your purchases. When the stock goes back up your shares purchased at the lower price will be up while the shares you purchased at the higher price may still be down. Using this method at some point the shares you bought at the lower price compsensate for the shares purchased at the higher price. That is how I sold out of Corning and Honda meeting my goal of making 1 share of stock, while the original share purchase was still down. It took 4 months of patients and a lot of money to get out of Honda and 5 months of patients and a little bit more money to get out of glass works.
Don’t get discuraged when your stock is down. This is a buying oppertunity. While you may have the urge to sell the stock just to be rid of the black mark on your record, it is best to hold. While holding the stock you really haven’t lost any money and will continue to earn dividends. The dividend payments can also help you get out of a stock by lowering how much you have invested in the stock, which in turn lowers your selling point. Be aware that while this method should work for most stock situations there is such a thing as a lost cause. A stock can keep going down and down and never go back up to where you need it to be to get back out.
Just a note the last stock in the list Walmart is the company I work for so every purchase I make I get a company match of 15%. We are going to handle this one differently. We are going to retain shares from the company match along with playing the market as much as possible. Unfortunately I am required to buy in at an unknown price every paycheck. So to make this work we are going to have to sell when the market is up as much as possible to get our money out and retain shares of stocks. I may also transfer shares of Walmart to my brokerage account and play the market in a better environment and earn shares of stocks both ways.
| Nokia (NOK) |
|---|
| Action | Price | Shares | Total | Balance | Holding |
|---|
| Buy | $5.34 | 92 | -$497.23 | -$497.23 | 92 |
| Sell | $5.64 | -90 | $501.64 | $4.41 | 2 |
| Buy | $5.28 | 93 | -$496.99 | -$492.58 | 95 |
| Sell | $5.57 | -91 | $500.91 | $8.33 | 4 |
| Buy | $5.28 | 93 | -$496.99 | -$488.66 | 97 |
| Sell | $5.57 | -91 | $500.91 | $12.26 | 6 |
| Honda Motor Company (HMC) |
|---|
| Action | Price | Shares | Total | Balance | Holding |
|---|
| Buy | $30.83 | 12 | -$375.91 | -$375.91 | 12 |
| Buy | $27.00 | 14 | -$383.95 | -$759.86 | 26 |
| Dividend | | | $2.57 | -$757.29 | 26 |
| Buy | $27.00 | 24 | -$653.95 | -$1411.25 | 50 |
| Sell | $29.31 | -49 | $1430.22 | $18.97 | 1 |
| Buy | $27.00 | 18 | -$491.95 | -$472.98 | 19 |
| Corning Glass Works (GLW) |
|---|
| Action | Price | Shares | Total | Balance | Holding |
|---|
| Buy | $36.30 | 10 | -$368.95 | -$368.95 | 10 |
| Dividend | | | $1.80 | -$367.15 | 10 |
| Buy | $30.00 | 16 | -$485.95 | -$853.10 | 26 |
| Sell | $34.37 | -25 | $853.29 | $0.19 | 1 |
| Unilever (UL) |
|---|
| Action | Price | Shares | Total | Balance | Holding |
|---|
| Buy | $52.39 | 7 | -$372.68 | -$372.68 | 7 |
| Dividend | | | $3.14 | -$369.54 | 7 |
| Buy | $51.50 | 9 | -$469.45 | -$838.99 | 16 |
| Wells Fargo Company (WFC) |
|---|
| Action | Price | Shares | Total | Balance | Holding |
|---|
| Buy | $47.40 | 7 | -$337.75 | -$337.75 | 7 |
| Coka Cola (KO) |
|---|
| Action | Price | Shares | Total | Balance | Holding |
|---|
| Buy | $45.28 | 19 | -$866.27 | -$866.27 | 19 |
| Walmart (WMT) with Company Matching |
|---|
| Action | Price | Shares | Total | Balance | Holding |
|---|
| Buy | $97.6844 | 0.717 | -$70.00 | -$70.00 | 0.824 |
| Buy | $95.5397 | 0.733 | -$70.00 | -$140.00 | 1.667 |