Author Topic: Trying out THAT system - yes, we've all thought of it...  (Read 2315 times)

Mr_Dividend

  • Hero Member
  • *****
  • Posts: 581
  • Karma: +21/-0
    • View Profile
Trying out THAT system - yes, we've all thought of it...
« on: July 08, 2016, 11:00:59 am »
Seems easy, buy shares on or before LDT - sell afterwards. Make tons of moola, buy island, declare yourself president and give the middle finger to the world. Easy.  :whistle:

Although not great for this task, I am using my easyequities account - although the Absa account and limit orders would be far better - if I see any success will move it to that account and up the stakes. That said, being able to use the full buy/sell amount will also come in handy, I will only use capital received to purchase the next share, and keep the dividends separate.

Debating on a rule that I can only sell at or above purchase price. Could be a long wait  :D


Should be interesting anyway.

Trade one Alexander Forbes @ 640
DY 3.44%

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2464
  • Karma: +43/-2
    • View Profile
Re: Trying out THAT system - yes, we've all thought of it...
« Reply #1 on: July 08, 2016, 11:13:09 am »
Obviously you will be selling for less than you bought, but could you then take the trading loss and offset some income against it paying less tax?

Should work if you're above the 15% bracket.

Mr_Dividend

  • Hero Member
  • *****
  • Posts: 581
  • Karma: +21/-0
    • View Profile
Re: Trying out THAT system - yes, we've all thought of it...
« Reply #2 on: July 08, 2016, 12:28:29 pm »
Very interesting idea Patrick - convert your 40% tax rate to 15%. Bit risky though!


Mr_Dividend

  • Hero Member
  • *****
  • Posts: 581
  • Karma: +21/-0
    • View Profile
Re: Trying out THAT system - yes, we've all thought of it...
« Reply #3 on: August 22, 2016, 07:46:27 am »
Three trades in - first trade did well - Alexander Forbes - sold on LDT but would have made a few more buck had I collected the divi and sold a couple of day after. next trade was Peregrine, this time I waited for the Divi, but should have sold on LDT! - dropped like a stone the next day, I sold early and manged to come out around even with my divi. I am now in adcorp and things are not looking great - down around 10% waiting for a 4% dividend. LDT is the 30 so will see, this one I would like to get rid of on LDT as I am not a fan of the company - which probably means I shouldn't be in in at all - but TA looked ok at the time.

conradl

  • Jr. Member
  • **
  • Posts: 50
  • Karma: +2/-0
    • View Profile
Re: Trying out THAT system - yes, we've all thought of it...
« Reply #4 on: January 03, 2017, 12:03:09 pm »
I see one of the new guys have asked around this method. Can you enlighten all of us Mr_Divi since your last post was in August.

Mr_Dividend

  • Hero Member
  • *****
  • Posts: 581
  • Karma: +21/-0
    • View Profile
Re: Trying out THAT system - yes, we've all thought of it...
« Reply #5 on: January 03, 2017, 08:19:57 pm »
Adcorp crashed the system! But it's not a share I would usually buy - had I stuck with quality shares - maybe.