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bigmattyg

8 Posts.

24/06/18

08:57

Post #: 33908607
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Originally posted by Davisite ↑

If we are going to contribute words of wisdom here are some more from me.

1. Think long(ish) term. The 50% CGT discount will make a huge difference to your bottom line if you are in the top tax bracket. Being a good trader is really hard as there is so much insider trading and corrupt activity in the market, but 12 months out the big boys are in the same boat as the little guys.

2. Avoid hype. The more a company is discussed on HC or on sites like Motley Fool, the more likely it is going to end in tears.

3. Be patient buying in and avoid FOMO. Sure you will miss out on some great buys, but there are thousands of companies on the ASX. Another great opportunity will be along soon.

4. Wait after a CR to buy in. If there is a CR wait for the SP to drift back to the CR price before buying. The big boys who get access to these discounted deals will sell out of a few pips and 95% of the time the SP drifts back to the CR price or even lower.

5. June is a great month to buy illiquid companies. Every year like clockwork people sell their dogs for the tax loss and if the company is illiquid the SP will get very cheap. I have bought more shares this month than in the previous six months - bargains everywhere for the patient.

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@Davisite the CGT discount is what has ultimately cost me a lot. Learnt my lesson here to take the profit off the table irregardless of this... fortunately I had already taken my initial investment off the table, but my CGT event was on the Thursday after the trading halt, the only reason I didn't get out when the Shapiro column came out. But in all I agree with your comments

BIG Price at posting: $2.22 Sentiment: Hold Disclosure: Held
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