My primary motive for investing is to grow a income portfolio but in the meantime I am using some trading to allow me to buy more stocks then I might otherwise be able to.
I have seen the opportunity to keep more of my trading profits by using rights issues to generate some extra money whilst also making a capital gains loss which allows me to keep more of my trading profits.
essentially I recently became entitled to buy 18000 AWC shares for $1.
I sold that many for $1.40 and am waiting to buy them back in the rights issue.
Any input on this strategy. The way I see it the only down side is that I will pay greater capital gains on the shares I bought in the rights issue in the future.
However I don't plan on selling my long term shares so this does not concern me.
Is there some other down side I haven't identified.