Pay Your Price, Not Someone Else's

One of the most important parts of setting up a trade is paying your price for the trade. There are times where the price is right there for the taking right away. Other times, you have to be patient and the price shows up later. But sometimes, the price never shows up. The reaction to the third case will be a great indicator of a trader/investor's level of discipline on trade entry.

Disciplined traders will look at a trade price as not to their liking and walk away ready to find the next trade. They know that the market has a plethora of trade opportunities. Those with faith who continue to improve their learning and execution abilities find moving on from not being able to enter a trade very easy, knowing the next one is right around the corner.

The undisciplined trader will compromise and sacrifice in order to make the trade. They feel a need to make the trade work, even if it means less profit. Those with fear of the market, react more often and do not participate in the market's revenue generating process as well. Generally, ego driven trading will drive the trader investor to make the trade anyway.


Remember that sticking to the calculated entry price is more of a reflection of the trader and their plan than the actual success probability of the trade at that entry price. Letting go of trades that don't go your way should be a regular occurrence. That is ok. Continue to implement your plan. Continue to search for improvements and test those adjustments to verify that they improve your plan.
Faith in the market and one's abilities to learn as they trade are important factors that drive these decisions.

PS - Today's market should provide plenty of opportunity regardless of which side you trade.  Happy trading!

Week (7/22) In Review (Ford, dividends, more)

There was a purchase of more shares of Ford. The link to the story is here. The purchase was made ahead of schedule due to the contribution made to the account because of KDK Option's successful Call Option trade for Bank of America (link here). The next purchase is planned for the next 4-6 weeks. The current return is 14% (since Jan 2015)

There were no dividends received during the week. The next expected dividend by AT&T in the beginning of August.

Some metrics of the current holdings are below.

Company	Current Price	Purchase Dates	Cost Basis	Current Profit/Loss
Ford	$13.83	8/7/2015, 1/19/2016, 7/22/2016	$13.66	1.24%
AT&T	$43.10	9/28/2015, 2/26/2016	$33.67	28.01%
Acre	$12.67	3/24/2016, 6/27/2016	$11.42	10.95%
Average				14.13%

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Additional Shares of Ford Purchased

On Friday, the fund has purchased more shares of Ford. The price paid for the shares was $13.71. The new purchase will increase the quarterly dividend by Ford by over 50%. The purchase also brings the fund closer to starting the covered call selling program.

The fund expects to hold onto the shares for a long time.



**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Pay Day! Dividend from Ares Com REIT

A dividend from Ares Commercial REIT was received.

As always, a portion of the dividend has been reinvested. 1.5% of the dividend was because of previously reinvested dividends. This compounding effect will continue to increase income going forward. In fact,3% of  next quarter's dividend will be from reinvested dividends in Ares.  This compounding effect will be the ultimate variable in building wealth.

Another portion of the dividend will be donated to charity.This is part of the mission of KDK Fund.



**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Week (7/1) In Review (New Purchase, New Highs, more)

There was a new purchase of Ares Commercial REIT shares during the week (link to story here). There were no sales. The next scheduled purchase is in 4-6 weeks.

There were no dividends received during the week. The next scheduled dividend receipt is July 15th.

Some metrics of the current holdings are below:

Company	Current Price	Purchase Dates	Cost Basis	Current Profit/Loss
Ford	$12.72	8/7/2015, 1/19/2016	$13.16	-3.34%
AT&T	$43.47	9/28/2015, 2/26/2016	$33.67	29.11%
Acre	$12.30	3/24/2016, 6/27/2016	$11.68	5.31%
Average				11.76%

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

AT&T at a New High

AT&T, a KDK Fund holding, has reached a new 52 week high today. It is trading around 42.50 during the day. The fund's cost basis is $33.67. The fund continues to expect to hold onto the shares and build the position through new purchases and dividend reinvestment.

Other holdings are Ford, and Ares Commercial Real Estate Investment Trust.


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

New Purchase in Ares Commercial REIT

Hello

The fund has purchased more shares of Ares Commercial REIT (symbol ACRE). The fund doubled the number of shares it now owns. The average cost of the shares is now $11.68. July's dividend will now increase its dividend by about 102% from the April dividend because of the purchase and compounding of the previous dividend reinvestments. The October quarter dividend will look to be about 3% higher than July due to dividend reinvestment compounding.

Other holdings include Ford, and AT&T. 


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Overall Market View

by Michael Keane

In the last couple of weeks, the market has been moving forward in an upward motion. Upon initial observance, skepticism was alive and well. But after this week's movement, the idea of a longer term uptrend may be upon us. This analysis has been strongly technically based.

A resistance level on the S&P ETF (symbol SPY) was expected to be $200. A resistance level for IWM was expected to be $105.00. This was based on a short term W formation being formed.

But both these levels were breached. After doing some further research technically, a large bullish doji candle was found in the SPY for February at the monthly level. This has now been followed by a strong bullish candle this month. The same pattern can be found in the IWM. Further, the weekly charts show a strong move through the 200 MA for IWM and the 20 MA for SPY.

To be sure, volatility is very high in this market and a new perception can show up quickly. Earnings are upon us and it is an election cycle that does not seem to be in need of headlines. But another up leg looks likely.

** A chart from Greg Harmon @harmongreg on Stocktwits assisted in the analysis**


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Terrible Year For Investors????

By: Michael Keane

There was a recent article published on Yahoo! Finance and Bloomberg that had the headline "2015 Is turning out to be a terrible year for investors" (link here). This caught the fund's attention for a couple of reasons. We disagree with the assertion that it has been a terrible year for investors. The fund also feels that this kind of headline mismanagement should be checked when needed.

While the fund agrees that 2015 continues to be a tough year for those investors looking to sell shares, those investors looking to actually invest are not really complaining about the downturn. The fund was able to pick up shares of MFA, Ford, and AT&T in the past six months at wonderful valuations. Without the downturn, this could not have happened.

The importance of a headline cannot be understated. KDK Fund is always looking to maximize the message to its readers when thinking about the proper headline. While reading a headline like the article has might gain short term reading, it actually does long term damage to the brand of news outlet delivering it. Seasoned investors know to avoid articles with these types of headlines because they know the content of the article will probably be just as worthless. While KDK Fund is aware that sometimes the writer (in this case Wes Goodman) does not have any control of the headline printed for the story, he or she should make it clear to the editors that the headline should match their quality of writing. Seeing Bloomberg at the headline game is kind of weak and more the norm of its main competitor. 

Well rounded investors know that there is ample opportunity in all markets. Seeing this type of headline screams for new investors and those consumed with knee jerk reaction emotions towards the market. Not only is the headline wrong in regards to the message, it shows a priority on gaining readers eyes instead of educating its readers brains. 

Happy Investing!

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.