Quick trading?

[Dearie23]

I am a complete newb but am interested in buying shares in just one company (say NAB or Westpac) and doing quick trades...buying in at a certain price, watching and then selling at a certain higher price before buying in again when it drops.

I understand this may not be all that quick, if the shares take a while to go up enough in order for me to sell, and/or if they take a while to go down again once I have sold to enable me to buy back in.

Nonetheless, what I want to know is if I was able to make say $100 every two weeks or so (as a rough average), how much of that would be eaten up in fees and capital gains tax?

My current part time work income is not high enough to pay any tax, so would that affect anything? (ie, no capital gains tax?)

Lastly, how long do you have to hold shares for in order to get paid a dividend?

 

[jjbinks]

Welcome,

Fees are based on your position size. There is usually a minimum fee e.g. $29 for upto $25,000 and then 0.12% per transaction. So if you make $100 from one transaction buy/sell you will lose around at least around $40 for brokerage.

As for tax, you should speak to an accountant.

Shares have ex-divedend dates if you hold the share on that date you will get paid a dividend.

Don't forget that the share you buy may fall in price and perhaps not recover or not recover for a long time. So there is a risk. If you are putting all your money on a single share the risk becomes very high.

I would suggest you have a look at investopedia or find a book on the basics of stockmarket and then do more reading from there if you are interested in learning more

 

[OmegaTrader]

I am a complete newb but am interested in buying shares in just one company (say NAB or Westpac) and doing quick trades...buying in at a certain price, watching and then selling at a certain higher price before buying in again when it drops.

I understand this may not be all that quick, if the shares take a while to go up enough in order for me to sell, and/or if they take a while to go down again once I have sold to enable me to buy back in.

Nonetheless, what I want to know is if I was able to make say $100 every two weeks or so (as a rough average), how much of that would be eaten up in fees and capital gains tax?

My current part time work income is not high enough to pay any tax, so would that affect anything? (ie, no capital gains tax?)

Lastly, how long do you have to hold shares for in order to get paid a dividend?

Working on JJbinks .12% or $40, assuming that is both buy and sell...

The question is how much money does one need to make $100 a fortnight.

If one wants to make $100 a fortnight.

So what is the edge .5% 1% ??

So here is the calc

100/(.005-.0012) ~ 26315.80 100/(.01-.0012) ~$11,363.65

So to make $100 per fortnight only trading once a fortnight requires equivalent trade size of 11-26 k.

That is a big risk.

More trades means lower capital, say 5 per fortnight, 2-5k is needed

Reducing capital too much will normally make it uneconomical as will spending more time on trading.
Better to work if money is the only consideration.

But keep in mind..

Trading is not like doing surveys or having a casual job

There is no guaranteed income, there will be losses or no gains at all.

There will be time spent and mental stress.

There is a lot of misinformation and charlatans making promises

If you want $50 a week better to work at coles or woolies, that is pretty easy.

Only 2-3 hours work, a lot easier than risking the $$$.

To even get to those sort of returns without reasonable capital would take time.

Research and learning. Practice on smaller amounts and more losing.

Strategies and risk management.

It is not as easy as looking at the market once a fortnight and making $100, just like that.

Decent legwork is required....

Good luck


THIS IS NOT ADVICE DO YOUR OWN RESEARCH