Adding Dividends To The Mix | $500 Account Challenge Days 64-68

Day 1: Explaining the strategy
Day 2: $PLTR Trade Idea 
Day 3: Buying $HOOD
Day 4: Up 5% on $HOOD
Day 5: Entered $UA Trade
Day 6: Trading In Puerto Rico
Day 7: Introducing Beacon
Day 8: S&P 500 Record Highs
Day 9: Robinhood Makes Moves Into Crypto
Day 10: Roaring Kitty Meows
Day 11: $GME Trade Idea
Day 12: $NIO Trade Entry
Day 13: Taking Profits In $HOOD
Day 14: Stopping Out Of $UA
Day 15: Stopping Out Of Everything
Day 16: No FOMO
Day 17: 6 New Trade Ideas
Day 18: Entering $ACB Trade
Day 19: DXY Says To Stay Out Of The Market
Day 20: "Shoulda, Coulda Woulda"
Day 21: $CCL Hits Target 1
Day 22: Trading Psychology Book Club Week 1
Day 23: $NKE Earnings Play
Day 24: Adding Day Trades To Our Watchlist
Day 25: Learning From Our Mistakes
Day 26: How Our 4H Candle Strategy Works
Day 27: Why I Am Bullish On $TKO
Day 28: Celebrity MemeCoins
Day 29: Stocks Near Our Entry 
Day 30: TheStrat
Day 31: Coaching Program Season 2
Day 32: $SWBI's Funky Chart & $TKO Entry
Day 33: Month 1 Portfolio Review
Day 34: The Importance of a Coach
Day 35: $NKE Trade Entry
Day 36: Positive Trading Mindsets
Day 37: Time To Go Cash Heavy?
Day 38-48: Traders Paradise Conference In Florida
Day 49: TraderSync Overview Of My Trades
Day 50: Day Trading $UBER
Day 51: Learning A Valuable Lesson About Day Trading
Day 52: Going To A $TKO (WWE) Event
Day 53: Practicing Support/Resistance
Day 54: Going Over The Past Trades
Days 55-59: Day Trading Roller Coaster
Days 60-63: Day Trader Loses $50K Story

Bonus: Using TraderSync To Track My Trades For This Account

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Adding Dividends To The Mix

So far with this $500 Account Challenge we have been focusing on one form of Income, Capital Gains Income.

Capital Gains Income: Generated through the sale of assets such as stocks, real estate, or commodities. Capital gains income presents both opportunities and risks.

Our $500 Account is up $100 in the form of Capital Gains Income. As we have witnessed throughout this journey, Capital Gains Income comes with both opportunities and risks. The opportunities comes in the form of potential profits from trades such as the ones we made on $UBER, $HOOD and $TKO. The risks comes in the forms of potential losses like we almost had with a couple of our day trades. There is no limit to how much money you can make when it comes to Capital Gains Income.

Two forms of Income that the majority of people have are Earned Income and Interest Income.

Earned Income: Derived from traditional employment, earned income provides stability but often comes with limitations in terms of earning potential. Despite its reliability, relying solely on earned income can hinder long-term financial growth.

Interest Income: Derived from interest-bearing accounts or fixed deposit products, interest income provides a secure but often modest source of revenue. While it offers stability, interest income may not yield substantial returns compared to other income streams.

Unlike with Capital Gains Income, with Earned Income and Interest Income you aren't risking any money to get this income. Earned Income is your job. In order to make this form of income you are not risking money, however you are spending time. Depending on the job, this form of income has limitations when it comes to how much you make per day/month/year. For example a lot of jobs are salary, and the increase in salary, and the national average raise percentage is 3% for employees who meet their goals and their employer's expectations. 

Interest Income comes in the form of Savings Accounts and other Interest bearing accounts. With Interest Income the money you have in your savings account is typically covered by the FDIC, so you aren't risking money to make this form of income, nor are you spending time. However the returns with Interest Income is typically not very high.  In 2024, the average savings account rate across all financial institutions is 0.46%, according to the Federal Deposit Insurance Corp. (FDIC). That means if you put $10,000 into a savings account, you'd have an extra $46 after one year.

Two more forms of Income that we will be adding to this $500 Account Follow Along Series is Profit Income and Dividend Income.

Profit Income: This category encompasses side hustles, freelancing, and entrepreneurial ventures. Profit income offers the promise of substantial growth but requires dedication and perseverance to build sustainable revenue streams.

Dividend Income: Earned from investments in dividend-yielding assets such as stocks or real estate investment trusts (REITs), dividend income offers consistent passive income. By investing in financially stable companies with a history of dividend payments, investors can enjoy steady cash flow.

For my Profit Income (side hustles, freelancing, etc) I've been selling Cheech and Chong Space Chew Gummies via TikTok.

@metamatttv

♬ Paris - 3Hzwave

Affiliate marketing is a form of Profit Income. This venture hasn't cost me any money, and takes very minimal time. So very Low Risk as far as both money and time spend goes. This form of income, just like Capital Gains Income, has the potential to have huge rewards/returns.

I decided to put my Profit Income into a Margin Webull Account to start investing into Dividend Stocks to add Dividend Income to this Account Challenge. The account started at $0, and I put the first commission I made with the Profit Income since deciding to do that ($85) into my Webull Margin Account.

I bought 1 share of $SCHD to add to the new Dividend Portfolio.

SWOT Analysis of SCHD (Schwab U.S. Dividend Equity ETF)

Strengths: Diversification: SCHD is a broadly diversified ETF that invests in a wide range of dividend-paying U.S. stocks. Low expense ratio: The ETF has a relatively low expense ratio, which can enhance returns. Consistent dividend growth: SCHD has a history of increasing its dividend over time.

Weaknesses: Market sensitivity: SCHD's performance can be influenced by overall market fluctuations. Potential for dividend cuts: While SCHD focuses on dividend-paying companies, there is always the risk of dividend cuts or reductions.

Opportunities: Growing demand for dividend-paying stocks: Investors often seek dividend-paying stocks for income and potential capital appreciation. Potential for dividend increases: As the companies within SCHD grow and prosper, they may increase their dividends.

Threats: Economic downturns: During economic downturns, companies may reduce or eliminate dividends. Competitive landscape: SCHD faces competition from other dividend-focused ETFs.

Click here for our class on the 7 Forms Of Income Most Millionaires Have