sharemarket discussion thread (1 Viewer)

[hiphophooray123]

wooo my shares are finally going back up, slowly, slowly.

fuck the credit crunches have been so fucking scary


ive got shares in WOR (worleyparsons energy) and QBE (insurance).

who wants to trade for a charizard hologram?

 

[ambermorn]

i just bought my first shares this week...i forget what they are! haha ppr or something? anyway i bought at 2.1c and they're at 2.5c now, yes low i know but they're newcomers...

 

[IronMaiden]

Parents super has suffered losses of up to 12%. Spewin.

 

[stazi]

going pretty well. bought my first shares 2 weeks ago. I own 120 ANZ shares ($2.4k worth). They have gained about $200. I'm waiting until they pay out dividends, and then will sell off soon after that if the market is up, as I predict it would be

 

[blue_chameleon]

Parents super has suffered losses of up to 12%. Spewin.

That all?

As long as they have another 5-7 years of work left in them, then they should be fine over the long-term. As the market drops, their super fund buys more units, so when the market picks up again, they recoup their losses much much quicker than the time it took to make those losses. Its a simple concept called dollar-cost averaging.

 

[Dumsum]

How does one trade shares on a daily basis without getting raped by brokerage fees?

 

[stazi]

Get loads of money first Then brokerage fees aren't too bad. I mean, the only reason I'm waiting to get dividends is because they'd pay for my brokerage fees

 

[stazi]

how? why do dividend payouts decrease the value of the share? So shares, for example, would drop from $30/share to $29/share just because a dividend is paid out?

 

[stazi]

just had a look at historical ANZ prices and share prices only fell by about 10-20c after dividends were paid, whilst dividends were over 50c/share.

 

[stazi]

ok thanks that helped understand it heaps

i do get 100% franking credits for my ANZ dividends = win. Are those credits only to offset the exact amount I got paid in dividends?

I didn't mean immediately sell off, btw, I meant wait for the payout first, then wait until the market hits its short-term peak, and sell the shares lah

 

[bazookajoe]

Ashton be my share guy

Also Chris, I have a Charizard hologram and will trade

 

[hiphophooray123]

share guy? is that a guy who you share around with ur mates at a rowdy party

awesome ben, you get my 43k that my shares are currently at, and i get ur pokemon card. awesome.

 

[withoutaface]

so basically a company is valued on the sum of all their projected cash flows

and a company can basically do two things with their retained earnings - give some to investors as dividends and keep some for themselves for reinvestment etc

so when a stock goes ex-dividend (ie. declared dividend belongs to the seller rather than the buyer) the stock price will usually drop in price by the amount of the expected dividend...because the money is flowing out of the company and into the hands of the investors...the company's assets have decrease...value has decreased


so theoretically, in a perfectly efficient market share price will decrease by the exact amount of the dividend leaving the investor's investment position (overall) unchanged.


then again in australia you get franking credits with dividends which can be used as tax offsets
and empirically share prices dont always drop by the exact amount of the dividend

but they do drop

so yeah, selling your shares after you receive the dividend doesn't neccessarily mean you've magically avoided the brokerage fees eroding yr profit.


geez my finance is rusty

Besides that you'll have a lot of people buying up in anticipation of the dividend, and a lot of people wanting to sell once they've received it, resulting in a rise then a drop...

 

[stazi]

lol if people sell once they receive the dividend, that would be a drop rather than a rise. if people are buying, then demand increases, whilst supply decreases = rise

 

[withoutaface]

lol if people sell once they receive the dividend, that would be a drop rather than a rise. if people are buying, then demand increases, whilst supply decreases = rise

That's what I'm saying. The share price goes up as you approach the time the dividend will be paid, and goes down as soon as it is.

 

[stazi]

oh right. that makes sense. the dividend cutoff date is like 1.5 months before they are paid though, so that's when the price would go up.

 

[blue_chameleon]

Day traders have software worth thousands and thousands of dollars as well...only people who are rich to start out with can day trade tbh

That plus the fact that day trading appears for all its worth, fucking stressful.

 

[withoutaface]

oh right. that makes sense. the dividend cutoff date is like 1.5 months before they are paid though, so that's when the price would go up.

That'd probably be so that it smooths out the drop, because the decrease in demand happens 90 days before the increase in supply.

 

[stazi]

fuck yeah. i'm so tempted to sell my ANZ shares. I mean, a 9.4% increase is huge in only about 12 trading days

edit: 10% lol

 

[Dumsum]

Get rich (or die trying).

Sif you have the skills to be a day trader anyway.

No I know, but they're skills I one day hope to have. I was just curious as to how one would hypothetically go about it.