What I’m Currently Trading $RIG

 

I get these emails all of the time. People want to know what I’m trading. I put a lot of effort into reviewing Tim Sykes strategy and products, but little time actually showing what trades I’m currently in.

A while back I put together a review on dividend investing, as opposed to day trading with Tim Sykes. I put together this video to show a trade I’m currently in using my¬†dividend investing strategy matched with some of the technical analysis I learned while trading with a prop firm.

Disclaimer: this is not a recommendation to buy this stock. Please read my full disclaimer at the bottom of this page.

To be honest, I didn’t time this trade perfectly. I failed to¬†use the trading rules I know are required to be successful. I let emotion in, causing me to buy too early, and I failed to follow a disciplined trading strategy. I initially bought at $31 because I wanted to make sure I got in on the stock. Quickly, the trade went south, down below $15 a share. I used it as an opportunity to buy more, bringing my average cost to $22.

In the end, I still win because my plan is to hold this stock long term, but I could have owned a lot more shares if I’d been disciplined and followed a sound trading strategy. The stock is starting to show signs of an ascending triangle, but I’m not fully convinced yet.

Transocean is exactly what I’m investing in right now. In my retirement account, I don’t like to trade. I like to invest. By purchasing heavily discounted shares of Transocean, and signing up for their dividend reinvesting plan, I am planning a long term growth strategy.

Oil is a great purchase right now. Stocks are getting hammered because of low gas prices, which present us with a perfect chance to buy stocks at a discount.

This is a different strategy than what Tim teaches. You can learn more by picking up a copy of The Great American Dividend Machine by Bill Spetrino.

Another excellent read would be Buffettology by Mary Buffett.

You can still continue to use Tim’s Pennystocking Silver if you’re looking to day-trade. I use the strategy in this video in my retirement portfolio.

Let me know your thoughts below. What are you currently trading, and would you trade RIG?

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