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Dividend trading?

Discussion in 'Commodities' started by RandomInvestor, Jan 2, 2017.

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  1. RandomInvestor

    RandomInvestor

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    Hey guys so I have a question someone I know said he made from $100 to 15k in one month doing dividend trading, I looked it up and seems like there is no such thing. But later he referred to commodities, I know commodities is very volatile and its a very speculative game as you can not predict things like gold, oil etc.

    Is it possible to make that sort of money in that amount of time? I know the odds are against you but thought if I just wanted to have a bit of fun. But I get the feeling that my mind is looking for a "get quick rich scheme" I know there isn't one but my mind still thinks there is, so I have been trying to keep my head off that.
     
  2. skyQuake

    skyQuake

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    By June that guy will have more money than the entire money supply in the world. Ask him for a cool million or so and I'm sure he'll oblige
     
    Iggy_Pop likes this.
  3. Nortorious

    Nortorious

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    Don't believe everything you hear.

    All power to him if he did turn $100 into $15k. I imagine trying to replicate a lucky streak would be tough though.

    Ask him what he made in the months prior or the months after and then you'll know if it was a systematic approach that produces consistent profits or pure luck.

    You want a system and not luck if you are looking to build wealth. A system with some luck is better but I personally don't rely on luck to get the job done.

    Perhaps try a few multi bets with Sportsbet if you are looking to get rich quick. You'll find that betting agenices aren't there for the customers to get rich.... with a lucky month though, you could turn $100 into $15k.
     
  4. RandomInvestor

    RandomInvestor

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    Yea I just supposed it was epic luck, he did say that commodities were predictable but they aren't.
     
  5. Smurf1976

    Smurf1976

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    You can certainly make money holding stocks which pay dividends. Regardless of what happens to the price of the stock, if it's paying dividends then at least you've got some income $ coming in from that.

    But $100 into $15K in one month? You won't do that other than by pure luck and dividends will have little if anything to do with it since no listed company pays out dividends on anywhere near that scale, not even close.

    If the aim is to build wealth then as others have said you need a system that produces results over time which can be replicated. A trading strategy involving frequent buying and selling is one approach that can work. Holding stocks for the long term to collect the dividends can also work as long as you pick stocks with an underlying sound business that isn't going broke. But $100 into $15,000 in a month? That's gambling at best, outright lies at worst.

    As for dividends and investing to receive them, two examples. Suppose that 10 years ago you bought:

    BHP shares at $22.96 each. Over the past 10 years you'd have received $10.10 in dividends for each share you held and the shares are now worth $25.06 each.

    WES (Wesfarmers, which owns Coles, Bunnings and other things). $38.90 per share 10 years ago, dividends and capital returns since that time total $18.66 per share and the shares are worth $42.14 each now.

    So you can make money buying stocks which pay dividends even if the price of the stock itself doesn't go up much (or at all) but we're talking about a gradual accumulation of wealth here and not becoming a millionaire overnight.
     
    Last edited: Jan 2, 2017
  6. Quant

    Quant

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    I call BS , close thread
     
  7. RandomInvestor

    RandomInvestor

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    Ah ok remember what I said though, he said commodities in the end.
     
  8. Smurf1976

    Smurf1976

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    Commodities with a lot of leverage is possible but where do the dividends come in with that approach?
     
  9. RandomInvestor

    RandomInvestor

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    Yeah that's what I don't get smurf it could just be bull****.
     
  10. Smurf1976

    Smurf1976

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    Indeed. Commodities or forex with huge leverage and a lot of luck it could be done in theory (though starting with only $100 might be a problem?).

    Luck - that would be needed since nobody's likely to have come up with a consistent strategy producing that sort of return and you'd be wiped out real quick if the first trade went wrong and you only had $100 to start with. So it would all have to have gone right, at least at the start, for it to work.

    But dividends? What dividends? Not going to be collecting any significant dividends in the space of a month especially if you're trading something that doesn't pay dividends in the first place. Even if it did involve trading dividend paying stocks, you'll still only be getting a single payment of a few %.

    Either there's some truly massive leverage involved here, spectacular luck, or it's BS.
     
  11. Redbeard

    Redbeard

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    derivatives?, not dividends
     
  12. pixel

    pixel DIY Trader

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    upcomingDiviByYield 13-02-17.png

    List of upcoming dividends, sorted by yield against today's prices
     
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  13. Skate

    Skate

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    Hi pixel

    Would you be able to let me know the source of your spreadsheet?
     
  14. Trembling Hand

    Trembling Hand Can be found on the bid

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    Almost a certainty.
     
  15. pixel

    pixel DIY Trader

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    It's one that I wrote myself.
    http://rettmer.com.au/TrinityHome/Services/index.htm
    It started out as a tool for small individual watchlists, and grew from there.
    (Ignore the price quoted on my website. For ASF members it's discounted to $50)
     
  16. john5

    john5

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    was he perhaps referring to dividend capture? (dividend trading), which i know from some experience when i was a beginner is very hard, if not impossible, to do with consistent profitability
     
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