PSEi: 6919.54 pts
Market is Closed

Dividend Play or Position Trading


I just have a question on how should I approach my investment strategy in stocks. Since some stocks are cheap right now, I decided to invest sa mga mgaganda dividend yields, so I got DMC and FLI. My goal is talagang kumita lang thru dividends and leave it there for maybe 15 or more years.
Where I am having second thoughts about is I know FLI has strong suppot at P1.5 and resistance at P2, while DMC would play around P10-14. Knowing these things make me think if I should just sell them when they hit those prices since base on the chart, they are already at the range where they will just bounce. With this, I can position my liquidity to other opportunities.
I've done some research on both companies, and I don't see any investment plan or change in direction of the company that might cause their stock prices to go higher than what are expected (unlike Tesla, people are not buying it because of their current balance sheet, but because of what the company can be in the future)
Would appreciate if anyone could share their thoughts on this. Thanks

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by nicooo 04/21/2020

I'm also accumulating stocks for dividends. The answer to your question really depends on one's risk appetite and strategy (so there's no one correct answer). One of the stocks I'm accumulating is AP; it's fairly conservative, not very high on cash dividends compared to other stocks, but relatively stable.

Selling them also depends on each person's strategy. I admire your long term vision of holding it for 15+ years, but for me personally, when directly investing in the stock market, my preference is to cut my losses at 15% and sell at 20% (stock price movement regardless of dividends). So with those conditions, my stock picks rarely reach more than 3 years. But I don't do day trading, because it's not worth the stress. I like to sleep soundly at night and not worry about my investments on a day to day basis.

For long term hold of more than 5 years, I usually just put it in certain funds and just forget about it. During these cheap times, I'm specifically putting an amount on a regular basis to BPI's High Dividend fund. But again, these are personal preferences. :)

by manny 04/22/2020 (Edited)

Really helpful. Thanks for this.

by nicooo 04/22/2020

What if you alot some stocks for long term investment and make some profit in acquiring dividends, look or make some research on who are those companies that gives great % of dividends. But to be sure, invest on blue chip companies if you want a long term investment.

And half of your power will be alloted on Position trading wherein you have to create some strategies on what to buy and when to sell. Make some cut-off like 10% or 20% etc., but depends on you when will you want to sell your equities/stocks then after that move on buying another stocks wherein you see some positive movements or green candles after you buy it on a low price.

I'm just a newbie when it comes to stock trading, never had been bought some stocks bec. i've been researching and collecting some strategies/tips before letting-go with my power. Goodluck with your trading journey!

by maiah19 01/21/2021