M1 Finance – Selling Quick Run Up Stock Gains, Rolling Into Negative % Stocks.


hello everyone and thanks for tuning
into the financial investor channel my name is Brent and today we’re gonna be
going over the n1 finance Roth IRA portfolio and we’re gonna be going over
a new sort of idea that I had in my head just within the last few days watching a
stock run up over 20% just within the last week this kind of gave me the idea
to maybe use m1 finance to take those gains and reinvest just the gains
elsewhere in the portfolio into stocks that have been hammered in the opposite
direction say a stock that’s gone down over 10% just within the last week so I
would take gains from one stock and move him into another intake you know it
would still balance out the portfolio so that’s we’re gonna be going over in
today’s video if you are brand new to the channel hit that subscribe button
below if you have had this idea or haven’t had this idea let me know in the
comment section below let me know what you think of it and if you do like the
video hit that thumbs up button below I highly appreciate it so what exactly do
I mean well if I take a look here at the one chart one-week chart we can see here
that a new stock here I added to my wife’s Roth IRA just a few weeks ago is
ticker symbol ABM this is the ABM industries incorporated it was a brand
new stock headed to my wife’s Roth IRA I believe it was a good position to buy
had strong financials added in there and just over the last week it is now up
over 20% making fifty one dollars and thirty four cents and gains it doesn’t
go ex-dividend until January so that still has me gives me a little bit of
time to capture this the the equity here that I made just in the last week roll
that into another stock that may be going ex-dividend here soon or that has
just been hammered here within the portfolio just within the last week so
this is something that’s fairly new to me and I kind of wish I had maybe
thought of it a little bit sooner you know earlier in 2018 I had Cisco Apple
IV a few others here that were up in the portfolio by some twenty to thirty
percent so here we can look at the all and we have quite a few stocks here
still in the green amb number one and it’s only been added
in my portfolio just the last week or two so it’s already outperformed Pfizer
we can see Cisco has gone down almost you know it’s at five percent now it
used to be up in the portfolio some thirty thirty five percent so kind of
looking at this how I can I take an advantage how can I take advantage of m1
finances free trades I can also reinvest my cash on balance
these are just a couple dividends that I’ll spit out this week so this week
already I’ve made five dollars and two cents from Abby’s Stanley Black & Decker
in Kellogg so dividends right there five dollars free back into my portfolio
able to be reinvested elsewhere now okay so here’s what we’re going to do this is
my plan take advantage of these quick gains now I’m only doing this with
stocks that have ran up very quickly in a short amount of time I believe this
stock is going to be falling back I don’t know if it’s going to be falling
back five percent ten percent you know fifteen percent who knows but at this
time it has ran up over twenty percent in a single week so with the advantage
of m1 finance I can go ahead and select the stock sell a piece so here my gain
is currently fifty one dollars and thirty one cents so I can go ahead and
say that I want to sell off fifty dollars of this specific stock I can go
ahead and hit continue and confirm what this is going to do on Friday or when
you guys are watching this video it’s going to sell off fifty dollars of
shares of this stock you know it’s partial shares now at you know at that
time I will have fifty five dollars in two cents to be able to reinvest back
into the portfolio now I don’t want to reduce I don’t want to increase my risk
by reinvesting those funds into stocks here that are more towards the bottom of
having dividend growth and have high payout ratios so what I’ve actually done
here and as I’ve looked at a couple structure lows for example is another
one I’ve added in recently but a utility company here that has been Edison and
Southern Southern Southern Company so some of the company is currently down it
has six years of dividend growth it’s utility
companies so yes it has a high payout ratio but it’s still a strong company
overall and utilities are sort of that safe play right now I want to build up
the equity within these portfolios these specific stocks so what I’m going to do
is I’ve sold off $50 worth of ABM I’ve looked at the new buying power so ABM I
bought it with a yield on cost of 2.6 – it’s now trading at a current yield of
2.25 if you were to buy back into that stock
Esso summit company I bought it at five point one two percent yield and now at a
current starting yield it’s offering me a five point three two percent starting
yield on that stock so I’m able to kind of move equity from one position into
another capture my gains that I’ve made within one stock and roll it into
another giving me an increased decreased unit cost and increased yield on cost
and it’ll basically increase my overall dividend payout with the same amount of
equity because all I’m doing is taking the equity that I’ve made within one
role in Reverse true and other and kind of going from there so I don’t want to
make it too confused in there but I you know I think you get the gist of it so
let’s go ahead and make our buy on Southern Company so on Friday morning
I’m gonna go ahead and initiate this currently Southern Company just was done
last week is down five percent good discount they’re better than my current
overloaded stock they’re at 20 percent and now I can go ahead and place $55 in
oops $55 in two cents that’s correct we can go ahead and do that and continue so
on Friday what’s going to happen it’s gonna sell
$50 of my currently over position ABM you know it’s up 20%
I don’t mind selling it off here because I’ve made 20% just within the last week
and I want to roll those gains just the gains over into stock hair that has gone
down 5% that I believe is that you safer you know it’s still minima mitigating my
risk it’s still a very strong dividend growth company it’s utility company and
kind of going forward I may do this a little bit more I just thought it was
kind of a neat idea to kind of capture my gains because earlier in the year if
I had captured and taken advantage of you know doing this with Apple Cisco I
could have rolled some of apples profits I was up some three hundred dollars just
in that position alone or I don’t know if a syringe of dollars in this
portfolio but I know it was up thirty percent at one point thirty thirty-five
percent if I had rolled those gains into a stock such as caterpillar or you know
what a couple of these other ones that were down for the year earlier in the
year that would have increased my starting yield for that position plus
decreased my unit on cost for those positions I wouldn’t have lost any
equity in the portfolio because all I was doing is selling off the gains that
I made out of one stock and kind of rolling it into another so in this
downturn I probably will continue to look for stocks that run up very quickly
say ten to twenty percent take some of their earnings shave them off the top
and kind of roll them into stocks that I could be negative right now I only have
a few positions that I’m actually up in the portfolio and I have quite a few but
you know a few more positions that are actually in the negative right now
offering me a very nice starting yield and many of them so here so for example
Altria currently has a starting yield of 6.5 – we have Simon Property Group has a
starting yield of 4.85 where my starting yield or my you my actual yield on this
company is four point six nine so there’s a couple instances here where I
can work on increasing my overall yield of my portfolio I believe right now if I
actually someone looked at my stock and bought into it would start right around
three point seven four but my actual average yield of my portfolio clearly
sits at three point four two percent as far as what I have bought into so far
now I currently have it sorted by the stocks here that I paid and grown their
dividend the longest so I feel a lot more comfortable ruling my dividends my
equity into positions that have grown and raised or dividend for the past ten
plus years so I only hold a few stocks here that I’ve actually
not paid or grown a dividend for more than ten years I have Altria caterpillar
Pfizer Simon Property Group avery dennison Cisco JPMorgan and Apple so of
those I’m not too worried that either of them will either cut or discontinued
their dividend JPMorgan I kind of I don’t think they will continue to raise
or pay out a dividend if we were to go into some hard time so right now I am
just going to continue to look for stocks that run up very quickly roll the
earnings into some other stocks and kind of go from there so that is all I want
to kind of go over in this video and let me know in the comment section below
what you guys think about this you think it’s smart to remove positions or not
remove all I’m doing is removing the games that I’ve made over a short amount
of time and rolling that into another stock that has been hammered here in a
short amount of time that is still a low risk high dividend growth you know safe
dividend growth investment I’m not selling out of any positions I’m just
rolling gains from one position into another to kind of take advantage and
capture those gains increase my yield on costs on specific stocks increase my
overall dividend payout so if you did like the video hit that thumbs up button
below if you are brand new to the channel hit the subscribe highly
appreciate it let me know in the comment section below do you agree with me do
you not agree with me do you disagree with me you know m1 finance free trades
no fees partial shares it all feels sort of win-win-win and I know I’m going to
be capturing a gain of 20 percent and rolling that into a loss of 5 percent a
very discounted stock there that I believe will benefit me in the long run
so that is it for this video thank you all for tuning in I will say next time
have a great day bye

4 thoughts on “M1 Finance – Selling Quick Run Up Stock Gains, Rolling Into Negative % Stocks.

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