| Share Trading Techniques. | | | | to qualify for the oncoming dividend and then sells |
| While perusing through one of my trading books, I | | | | shortly afterwards. |
| came upon some fascinating facts that were | | | | You buy before the "Ex Dividend" then you can |
| very thought provoking, so I will pass them on to | | | | sell the next day. Making sure of course you have |
| you. | | | | the dates right in the first place. |
| The author is "Daryl Guppy" a well established | | | | But to qualify for the "Franking Credits" you need |
| author and successful trader as well. | | | | to own them for 45 plus 2 days. |
| He stated, that over time he noticed that once a | | | | 1day for buying, 1day for selling plus 45 days = |
| share magazine was published that the stocks | | | | 47 days. Anything less and you miss out on those |
| that were recommended by the magazine went | | | | franking credits. |
| into an uptrend, because the readers took notice | | | | An interesting thing to note is that a stock's share |
| of the tips given and bought them. Here are the | | | | price invariably falls usually by the amount of the |
| statistics. | | | | dividend paid after the ex dividend date expires. |
| 1. One month after publication 90% of the stocks | | | | Another trick is to buy the stock 2-3 weeks |
| mentioned were still in an uptrend. | | | | earlier in the hope that the share price goes up |
| 2. Two months after publication 80% were still in | | | | prior to ex = dividend. |
| an uptrend. | | | | A Warning About IPO's. |
| 3. Three months after publication only around | | | | The market seems to be inundated with IPO'S |
| 45% were still in an uptrend. | | | | (Initial public offering) these new companies all |
| Obviously it pays to buy the magazines each | | | | seem predominately to be in the mining sector. |
| month and buy the shares mentioned. | | | | All eager to get in on the current "minerals boom" |
| But I personally would be watching them very | | | | A few opened up higher than the initial entry price. |
| closely and would be hanging on to them only till | | | | Most seem to be exploration of some sort or |
| my preset profit level had been reached and I | | | | other. The flavors of the month are usually oil or |
| definitely would be out after a 5-6 weeks. | | | | uranium. |
| They would still have to qualify to my buying | | | | These are of course classified as "Speculative |
| strategy in the first place if not I would not touch | | | | Stocks." |
| them at all. | | | | Which can mean that once the cash has dried up |
| Now a hint for you here, How I trial my" New | | | | and they haven't found anything, they then have |
| Ideas" out is by "Paper trading." That way I am | | | | to either raise more cash or shut shop? And your |
| not risking any of my money in something that I | | | | cash has gone with them. |
| am not 100% sure of. | | | | The rags to riches stories are many, but the road |
| If you want to paper trade the places I use are | | | | is littered with the crushed hopes and dreams of |
| and both are free sites and you can find free | | | | the unwary investors. |
| information there as well. | | | | All are searching for that elusive pot of gold at |
| Becoming a "Dividend Stripper." | | | | the end of the rainbow. |
| An interesting thing I found out was that apart | | | | So be wary, do your research, and don't jump in |
| from being share trader I have also become a | | | | blind. Be an informed investor. |
| "Dividend Stripper." I shall explain this further as to | | | | If it looks to be too good to be true then it |
| what I do occasionally. | | | | usually is. |
| A dividend stripper is a trader who buys shares | | | | |