Ann: FY15 Half Year Results Presentation, page-40

Should of listened, but when margin loan involved, I somehow seem to worry about the interest cost in holding on too long.

E.g if I buy 200k @ say $2.70 costs = $540,000 on 65.00% lend at 7.50% interest (calculated daily) less brokerage (Macquarie Prime after rebate as I trade over $10.0m a month) = 0.08%

I look for small swings of 0.03-0.05 and hopefully this occurs during same day or next day. Trading profit after brokerage (at say 0.03) = $2,136-$$4,100.

If I hold for too long interest cost is roughly $110.00 a day in the above example.

Yesterdays buy 100k @ $2.66 and sale at $2.73, netted $6,500. Small return on dollar outlay but if you can repeat the process regularly, provides good income stream.

Sometimes I get it wrong and should of held out for longer, I had 500,000 Medibank at $2.39 that I had held for a week, and sold at $2.44, only to see price increase on same day to just over $2.50. $0.06 difference equated to $30.0k opportunity cost.

I lost a bit in the past and now try and be disciplined and take small profits as quickly as I can, so far this strategy is working well. Since December I made a sizeable profit with FMG, but got caught out badly in January buying 200k at $2.80, and then more and more as it dropped. Did not have the guts to add to holding at $2.00. But price has now recovered and back to positive. I am going to sell, take the profit and buy back in at the next opportunity.

Apart from FMG I only trade in TLS, MPL & QBE as they have large daily volume and price during the day provides opportunity to buy and sell for small profit (as long as timing is right).

I have worked out that greed kills and that the ASX is not an RSL Club.