I have to disagree...if you consider CGT and taxes, depending on how much your trading at a time, long term holders may actually be better off plus you do not risk the SP continually rising and missing out.
For example:
Person A buys 10k shares at 0.5c, sells at $1, buys back at 0.75c, then sells at $1.50. In his first leg, he's made $5k and assuming he pockets that $5k, in his second leg, he will make $7.5k. But because he's trading, theres no CGT discount. Therefore, assuming an effective tax rate of say 35%....he's taxed $4375, meaning he's left with $8125 after tax.
Person B buys 10k shares at 0.5c, holds, then sells at $1.50. He's made $10k, but he gets the CGT discount. Therefore, hes taxed $1750 at the same 35%...so he's left with $8250
...so no you wont necessarily be far better off than long term holders plus you run the risk missing out if the SP doesn't retrace back as planned.
- Forums
- ASX - By Stock
- A2M
- How one dairy stock became a cash cow
How one dairy stock became a cash cow, page-8
-
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add A2M (ASX) to my watchlist
(20min delay)
|
|||||
Last
$5.73 |
Change
-0.010(0.17%) |
Mkt cap ! $4.148B |
Open | High | Low | Value | Volume |
$5.74 | $5.78 | $5.70 | $10.10M | 1.760M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 8889 | $5.71 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$5.75 | 927 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 8889 | 5.710 |
7 | 22774 | 5.700 |
5 | 34099 | 5.690 |
1 | 3320 | 5.680 |
2 | 1700 | 5.670 |
Price($) | Vol. | No. |
---|---|---|
5.750 | 927 | 1 |
5.770 | 8212 | 1 |
5.780 | 8212 | 1 |
5.800 | 3124 | 4 |
5.820 | 8501 | 3 |
Last trade - 16.10pm 28/10/2024 (20 minute delay) ? |
Featured News
A2M (ASX) Chart |