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Trading and investing hold the potential for financial freedom
However, it’s not just about the money. It’s a journey that requires emotional awareness and a long-term perspective. To be effective traders and investors each must manage their risk to maximise their earnings.

Remember, money is an integral part of life, but our critical thinking skills drive personal development. By being mindful of our thought processes, we can enhance our self-awareness and make more informed decisions in life.

Skate.
 
Skate said:
Understanding short-term market fluctuations is crucial for investors to appreciate and accept.
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If I was an investor then my understanding of short term fluctuations are that they're irrelevant. I wouldn't even notice the weekly volatility let alone 2hrs.

That you're mentioning it indicates that you're not a true longer term investor. I sense you're having difficulty shedding your underlying trader mentality.

Embrace your true trading personality, let it fly into your specialty, weekly trading systems.
Soar with the eagles.
 
Skate said:
My current thinking when it comes to my investment strategy for the 2024/2025 financial year. I plan to gradually increase my exposure by lifting the number of shares in WDS over the year.
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In line with my investment strategy
I’ve decided to track my progress towards generating a sustainable income from dividends and franking credits based on the new financial year. This approach provides a more accurate assessment. Why? The decision to transition from trading to investing was made in late December 2023. Starting this project at the beginning of a new financial year makes the evaluation more relevant compared to a mid-year start. Until the new financial year begins, I plan to reinvest the dividends into accumulating more WDS shares, as previously mentioned.

FMG Dividend today
Today’s dividends from FMG have been strategically reinvested into acquiring additional WDS shares, thereby enhancing my portfolio exposure.



Skate.
 

@peter2, I appreciate your perspective. As a long-term investor, I agree that we shouldn’t be overly concerned with short-term market fluctuations. My recent post about a "two-hour fluctuation period" was intended to spark further discussion and provide an opportunity for me to share additional insights.

Understanding these fluctuations, whether as a trader or investor, can offer valuable insights into market trends and investor sentiment. These insights can, in turn, inform our trading and long-term investment strategies.

Your advice about embracing my trading personality resonates with me. My trading background does influence my approach to investing. However, I’m committed to evolving my strategy to become a more patient and strategic investor. While I do miss trading, I’ve made a commitment to this new approach. I’m particularly interested in exploring whether dividends and franking credits alone can create a sustainable yearly income.

For now, let’s continue to learn from each other and soar with the eagles, regardless of our preferred investment vehicles.

Skate.
 

Three Dividend Payments Down, One to Go
I’m happy to share that I’ve reached another significant milestone in my investment journey. I’ve now received my first-ever dividend payments from three major companies: FMG, BHP, and CBA.

Yesterday, on the 27th of March, FMG made their dividend payment. This was closely followed by BHP and CBA, who distributed their dividends today. This marks a pivotal moment in my financial journey. Stay tuned for the final dividend payment from WDS.

WDS - payment date
4th April 2024 (Not long now)






Skate.
 

Accumulating more WDS shares
In line with my investment strategy for the 2024/2025 financial year, I'm pleased to announce that I've gradually increased my exposure in WDS. I've lifted the number of shares in WDS as planned from the dividend payments from BHP and CBA, which were paid out today. This strategic move aligns with my investment objectives and enhances my portfolio exposure.

I'm confident that this approach will position me well for long-term growth and I look forward to seeing the positive impact on my investment portfolio.



Skate.
 

A Real-life Investment Strategy
The objective of this 12-month real live experiment is to explore the feasibility of deriving a sustainable income from a portfolio of five investments, based on three key principles: (1) Dividends, (2) Franking Credits, and long-term (3) Capital Gains.

Just to put things into perspective
As of the close of trade today Thursday the 28th of March 2024, the investment strategy had netted a gain of $151,394 being made up of Open Profits of $95,466, Dividend payments of $39,149 with attached Franking credits of $16,778.

After 16 weeks of this experiment
# Strategy Progress = $151,394
# Dividends and Franking credits = $55,927
# Capital Gains = $95,466
# Weekly Average = $5,967












Skate.
 

I've been asked if I had timed the purchase of WDS shares
The straightforward answer is - No. I decided to buy additional shares once the payments were confirmed. Even when I made a quick decision to transition from trading to investing, I acted promptly. The decision was made on a Sunday, and I purchased during the pre-auction, securing the opening price the very next day.

Will I time my next purchase of WDS shares?
Absolutely not. When WDS’s dividend is paid on the 4th of April 2024, amounting to $12,731, I plan to buy at the market price, whatever it may be at that time. It’s important to note that while trading is all about timing the market, investing is all about time in the market. This principle guides my investment strategy.

Skate.
 
Dona Ferentes said:
isn't dividend payment time fun!
Have/ had you considered DRPs, assuming the companies offer them?
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@Dona Ferentes, you’re absolutely right, dividend payment time is indeed exciting.

In the past, I have taken advantage of the Dividend Reinvestment Plan (DRP). However, under the current rules of my investment strategy, dividend reinvestment isn’t allowed. As I’ve mentioned in previous posts, my strategy until the end of this financial year is to accumulate additional WDS shares.

However, starting from the 1st of July 2024, which marks the beginning of the new financial year, my approach will shift. At that point, I plan to use the dividends and franking credits from my investments to generate a sustainable income.

This strategy aligns with my goal of using my investments to enable a liveable wage. I’m excited about this next phase of my investment journey and look forward to sharing more updates along the way.

Skate.
 
Professor certainly looking forward to the next instalment.
If and when we decide to sell the farm and retire, your current investment strategy's is one, I will be probably looking to use.
 


# Disclaimer - This is a theoretical investment exercise
In this exercise, we put "Google (AI) Gemini" head-to-head with seasoned fund manager Dr. Don Hamson from Plato Investment Management. Both were tasked with providing their "top five growth and income stocks" for the next 12 months on the ASX.

First Place - $8,325
# Google Gemini (AI) - RED line on the equity chart

Second Place - $5,041
# Dr. Don Hamson (Expert) - BLUE line on the equity chart

Third Place - $1,339
# Skate - BROWN line on the equity chart






Skate.
 
The Thrill of Trading vs. The Patience of Investing
In the financial world, there are two main paths we can choose to walk down trading and investing. Each has its unique rhythm and requires a different mindset.

Trading is often likened to a high-speed chase
It’s about staying ahead of the market, making quick decisions, and taking calculated risks. The thrill of actively trading, of trying to extract one’s share from the markets, can be exhilarating. It’s a dynamic process that requires constant attention and adaptability. Every week brings new challenges and opportunities, and the potential for immediate rewards can be enticing.

On the other hand, investing is a game of patience
It’s about long-term growth and the power of compounding. Unlike the fast-paced world of trading, investing often feels like watching paint dry. It’s about waiting for the bus to arrive, waiting for dividends to roll in. It’s a strategy that focuses on steady growth over time, rather than quick gains. Investing feels like you are doing nothing because you are doing next to nothing.

Skate.
 
While trading can provide a rush of adrenaline
Investing offers its own kind of satisfaction. There’s a certain peace in knowing that you’re building wealth for the future, even if it’s a slow process. And while it may not have the same thrill as trading, the end result can be just as rewarding.

In the end
Whether you choose to trade or invest will depend on your personal goals, risk tolerance, and temperament. Some may thrive on the excitement of trading, while others may prefer the steadiness of investing. Both paths have their merits and can lead to financial success if navigated wisely.

Remember
The key to both trading and investing is education. The more you understand the markets and your own financial goals, the better equipped you’ll be to make informed decisions. So whether you’re a trader at heart or an investor, never stop learning.

Skate.
 
How long does it usually take for your money to hit the bank account? I haven't seen anything with mine yet, the dividend is nominated to go into the trading account.
 
TimeISmoney said:
How long does it usually take for your money to hit the bank account? I haven't seen anything with mine yet, the dividend is nominated to go into the trading account.
Click to expand...

@TimeISmoney, below are two screen captures. The first highlights the payment date being the 28th of March 2024. The second displays the date when I received my dividend for BHP and CBA and FMG.






Skate.
 
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