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
Most liked posts in thread: Dividend trading?
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.
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
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.
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)