Short term trading dividend stocks
If done properly swing trading can also provide short-term gains that can supplement your income or you could pull out your profits after taxes each year and invest them into your long-term retirement account to further build your dividend income stream.
Okay, back to the important principle that swing trading is completely separate from your long-term retirement investing. First off and most importantly is that the money that you set aside for swing trading should be money that you can afford not to have access to or need for any other purpose. You keep it separate from your retirement money by opening a standard non-IRA brokerage account and funding the account with your swing trading money. Sometimes I like to go to sleep at night and not worry about my portfolio.
Look forward to reading more about these investment strategies. Swing trading is better suited for those that are already actively watching the market, and will not be for everyone. However, every investor is different and should only act on what they find works for them. Glad I logged in this morning and was able to read this blog post as I have recently had many questions with this topic.
Then information on how to analyze the chart accuratley to maximize the effectiveness of your trades. Hi Blaine, Thanks for the site and the discussion. I really like dividend growth stocks. I fell into swing trading by accident. Over a year ago, Merrill Lynch gave me a basket of growth stocks that pay dividends. So, I decided to buy the companies that were about to increase their dividends. I expected that the prices would increase in line with the divi increase, over the following 12 months.
Most did, but some rose more quickly to the target, in four to eight months. On the theory that most of the price move had already happened, I sold some and moved on to the next stocks that will increase divis.
I recorded 10 years of dividends for each company so that I could see what their practice was as to dollar amounts, percentages, and exact dates declared, x-div, record date, and paid date. This data base guides my trading, or holding, as the case may be. I like to buy about one month before the next divi increase is announced. When I sell in four to eight months, then the compounding factor increases. So, I am swing trading right in my retirement account. Design and style and engaging graphics do issues.
The best web-site layout was pure textual content -fifteen a long time ago. The far better way to style and design is to have an understanding of the reason of the internet web site. Some website web sites only want to express text or have to have a very simple structure, other net sites have to have dynamic design and graphics.
It is dependent on what you are providing and what the web site objectives are. Simplistic articles or blog posts like this should be taken with a grain of salt. Sometimes, it becomes nearly impossible to cross a difficulty. The dividend capture strategy is based on the volatility and unpredictability around key dividend dates.
The biggest advantage with the dividend capture strategy is the fact that there are simply so many stocks to pick from.
There are hundreds of different stocks paying different rates of interest. Some of these stocks are well-known brands like Apple and Walmart, while others are lesser known but they pay incredible yields. These yields could be multiple times the amount of money you would expect from a savings account or CD. Another clear advantage is that this strategy is reliable.
If you create a reasonable day-trading dividend capture strategy, you can easily generate a high return over the course of a year. You can simply read up a little about the company, check the dividend yield, and figure out the payment schedule.
A dividend capture strategy is not an easy way to get wealthy quick. There are several factors that limit the potential of this strategy. The biggest disadvantage is the negative price adjustment. This mechanism of the stock market prevents a dividend capture strategy.
Another issue is the way these dividends are treated in terms of taxes. But for a dividend to qualify for this tax treatment the stock must be held for at least 60 days in the days before the ex-dividend date. Holding a stock for so long makes the dividend capture strategy nearly impossible. Unpredictability is another hurdle. If the stock price adjusts more or less than expected on ex-dividend date it could seriously impact the whole dividend capture strategy.
So if the company you bought makes a major negative announcement on the ex-dividend date, the stock price could fall far below the amount you hope to recover from receiving the dividend later.
Of course, the company could also make a positive announcement on the ex-dividend date that sends the stock skyrocketing.