"SHARE TRADING" strategies ,thoughts , ideas- why I love to pay TAX

[shasta]

Using a company setup takes you away from using a more simple cash basis and having to account for unrealised gains/losses on shares and FX.

Good in that it can avoid tainting on longer term investments, or those you wish to hold in a different name.

Interesting how different people think with there trading strategies, i'm not too far from you JBMURC, over the years we seem to end up in the same companies.

One old rule i had was holding 5 companies max, research the fundamentals, look for undervalued assets, negative EV, mgmt with skin in the game, well funded, no debt etc

Now i see various non resource companies and buy in if the fundamentals stack up, and end up selling soon as anything changes, or buying more on weakness.

Disc; holding 6 stocks at mo and a small holding in TRT via in specie distribution from TNG.

[JBmurc]

Yes shasta great minds think alike >>

Another lesson >>On Trading strategies >>FARMING a Trade

.1#..Farming a trade(scalping) = intraday/swing trading .....

Now farming a trade is where I like the company but I believe I can take the profit during the day usually around open and buy back in lower again later in the day or maybe the next >>

-Doesn't always work >> but end of the day if your target is say $700-$1000 profit for only days holding it's not the end of the world if you miss out on another couple of %.... >>>

This week alone I've missed out on two great intraday trades .

.... RLE going from mid 8's to over 10c to then back to 9c
....RSG from the 1.04 to 1.09 today ....

Both times be away having lunch with family >> always the F'n way!!

Now the above trades may not seem that exciting ...But had I been in front of my screen instead of away
I would have made $4500 from the 50k invested and best of all I would have been back into the same companies to do it all again fornot much more than I originally paid>>>>

This is why I love trading over investing >>

and yes I'm pissed about missing the trades

[JBmurc]

Using a company setup takes you away from using a more simple cash basis and having to account for unrealised gains/losses on shares and FX.

Good in that it can avoid tainting on longer term investments, or those you wish to hold in a different name.

Interesting how different people think with there trading strategies, i'm not too far from you JBMURC, over the years we seem to end up in the same companies.

One old rule i had was holding 5 companies max, research the fundamentals, look for undervalued assets, negative EV, mgmt with skin in the game, well funded, no debt etc

Now i see various non resource companies and buy in if the fundamentals stack up, and end up selling soon as anything changes, or buying more on weakness.

Disc; holding 6 stocks at mo and a small holding in TRT via in specie distribution from TNG.

I use to only hold x4-x6 shares and for a good amount of time sometimes only x3.(Main because my trading went stale couldn't be stuffed etc)..... but very recently I was finding with the huge amount of study I was coming across so many great companies with my targeted short term 100%++pa upside that I decided why not spread the risk ...

So my new set range is min 8 to 12 max ...(will see how this plays out for me.. so far so good)

.In the past I had been hurt by one or two high risk high growth specs being crushed by insider trading or announcment >>
----- I just wasn't keep a close enough eye on because of my work >>>even though at times I was only invested in 3-4 companies
when you're away from the net at SEA for several days at a time with maybe couple tired hrs free before heading away again..

Yes I have tried stop-losses to find I was stopped out for an intra-week lows when I got back days later ggrrr ..(IMHO stop-losses aren't really suitable to the micro-cap sectors but are fine for the bigger end of town with higher volume trading >>)

If you don't have the time to put solid 20hrs+ per week every week don't become a ShareTrading ...(Well in my experience of keeping your trading mojo flowing>>In a busy week I'll spend 50hrs+

[BeeBop]

Thanks for the thread....I have got a wee bit bored so have broken my rules. My rule break has been inspired by the CEO of the Qatar Investment Authority (I attended a talk by the man), who said that you have to reassess your strategy on a regular basis. As a result, I have decided to try (on the Nz market because it is so slow and pays dividends if I get it wrong) a small 10K trade to see if I can generate a $100 profit. Of course I am not affected by tax but I will clearly be hit by the trade fees. I have selected SPK based on TA and FA, loaded the trade at 3.30am my time, it went through so I am hoping that over a short hold I may be able to hit my target profit (needs around an 8 cent rise though). If it doesn't work, then it pays a handsome dividend! Note: my attempts at trades in the past have been abysmal!

[JBmurc]

Thanks for the thread....I have got a wee bit bored so have broken my rules. My rule break has been inspired by the CEO of the Qatar Investment Authority (I attended a talk by the man), who said that you have to reassess your strategy on a regular basis. As a result, I have decided to try (on the Nz market because it is so slow and pays dividends if I get it wrong) a small 10K trade to see if I can generate a $100 profit. Of course I am not affected by tax but I will clearly be hit by the trade fees. I have selected SPK based on TA and FA, loaded the trade at 3.30am my time, it went through so I am hoping that over a short hold I may be able to hit my target profit (needs around an 8 cent rise though). If it doesn't work, then it pays a handsome dividend! Note: my attempts at trades in the past have been abysmal!

Personal with 10k I'd be hoping for a tad more for the efforts(If say for a day-swing trade) ....as I find if your putting the hours in you should be making the most for it ..

.and if I was just happy with $100 profit that would also mean I'd be selling out if I was under water $100(If not you will be trading style will led to abysmal outcomes from taking profits too soon and hanging onto losses too long)

#-Reassess your strategy on a regular basis....

My primary micro strategy doesn't change only modify(better I hope to my goals of reaching 100%+ p.a) ....but i do change my strategy fundamentally around market senitment towards what my companies I have invested are directly affected by ...Gold dropping $40oz etc

[craic]

I find it hard to see where you guys are coming from as far as trading profits are concerned. I have my 18,000 block of spark that I trade. Sold it on Thursday @369cps and could have bought it back yesterday for 358 and gained a cash payment of 18000x11cps but I did not sell as I believe there is more room to drop. If WP goes with Labour there will be quite a crash. I spend time watching the numbers but it does not amount to any significant part of my day and the odd grand here and there keeps me happy. I usually have a buy or sell number in place just in case something big happens when I'm elsewhere.

[JBmurc]

I find it hard to see where you guys are coming from as far as trading profits are concerned. I have my 18,000 block of spark that I trade. Sold it on Thursday @369cps and could have bought it back yesterday for 358 and gained a cash payment of 18000x11cps but I did not sell as I believe there is more room to drop. If WP goes with Labour there will be quite a crash. I spend time watching the numbers but it does not amount to any significant part of my day and the odd grand here and there keeps me happy. I usually have a buy or sell number in place just in case something big happens when I'm elsewhere.

Right I think you meant to post "BUY" more SPK ....and thats fair enough ....I guess the first question I would ask is how long ago and at what price did you BUY the 18,000 block you just SOLD...

You're having trouble understanding my strategy for "Trading for profit" ?? Buy low sell High ...

[JBmurc]

As much as I like to trade LONG ...sometimes I like to keep my options open in case of a major BEAR market attacks ...just like the GFC did one minute Fine next DOOM ...

I like to keep in context the global MACRO sentiments of the International Shares markets as we know if the US markets crash so does the ASX ... Even safer plays like Gold producers?Cash cows companies can still be forced downwards(abit on much lower levels) on margin calls on other investments forcing holders to sell them to survive deflaut..etc etc

there is many ways a trader can make a profit these day in SHORTING the market or even Companies ...Futures, CFD's, Warrants, options all offering different styles of leverage ..

. market goes down 10% you can make 100% return on some of these products if not more afters costs ....but what I've found is unless your've perfectly timed your position you can get badly burnt (I certainly have at times esp in shorting shares) as the spread/commission straight away putting you on the back foot ..aka you might need the market to drop .5% can to break even on costs...and if your timing is not 100% perfect you can without even being completely of the mark in a position where your down 20-30%

now depending on margin your provider will be asking for more funds to cover your negative position or else they will dump your position ...One of my first plays in the FOREX market ended only seconds after I took my position with a forced cose of order for a $300 loss(my provider at the time uses a stop-loss provision)

Lets just say after having a play around Futures,CFDs,warrants I've decided unless your got a million+ book and serious high risk trading skills I'll leave it too the BIG BOYs and players

...recently I came across BETA ETF's which you can buy just like shares on the ASX

BEAR 1:1 short to ASX20
BBOZ 2-3:1 short to ASX20

BBUS 2-3:1 S&P500 (hedged currency)

Still not perfect but a safer option for me IMHO

I see recently had you took a position in BBUS at recent lows -S&P500 market peaks end of JAN18 or MAR12th you could exit for around a 15%-20% profit

CASH in the CALL account of course one of the best insurances if the market is looking toppy >> then if "TRADING EMOTIONS" are good you will let the crash play out and look for a double bottom etc to buy your favourite companies

[kiora]

BlackRock
Looking for income return,not price return. Yield investments
Lower interest rates for longer
A lot of liquidity being removed from the market.What does this mean for shares?
https://finance.yahoo.com/news/black...185619512.html

[kiora]

What type of investor are you?
https://www.marketwatch.com/story/he...of2&yptr=yahoo