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Thoughtful video and analysis... thumb up
StockTradingMaster 1 year ago
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ok better example:
My uncle is a farmer.
In the late '80's he bought 5500 Wesfarmers shares for $1.20.
In 2007 these were trading as high as $42.20.
This is a profit of $200,000.
If he sells them he pays tax on that at maybe 40% (80,000)
If he Short sells them at $40 to hedge his risk in '07 because he knew a recession was close by and buys them back in '08 at $13 he's lost 10 - 20,000 but still has a portfolio worth 180 - 190,000 and hasn't got a tax bill for $80,000
antoset83 1 year ago
This has been flagged as spam show
ok better example:
My uncle is a farmer.
In the late '80's he bought 5500 Wesfarmers shares for $1.20.
In 2007 these were trading as high as $42.20.
This is a profit of $220,000.
If he sells them he pays tax on that at maybe 40% (80,000)
If he Short sells them at $40 to hedge his risk in '07 because he knew a recession was close by and buys them - 1back in '08 at $13 he's lost 10 - 20,000 but still has a portfolio worth 200,000 and hasn't got a tax bill for $80,000
antoset83 1 year ago
Comment removed
lti12 3 years ago
There are many ways to play depending on your goal.
If you've bought a stock and plan to hold it for 2 months, you can short the same stock in another account. When the price comes down in the intervening period, you make a profit on the short.
But if the price goes up and up, then you're screwed.
But who knows where the price will go?
stockfessor 3 years ago
Comment removed
lti12 3 years ago
What hes trying to say is this: You bought 100 BHP shares at $35 and they're currently trading at $40. You see a turn in the market and you short them and they go down to $35, close your short position and take a $500 profit on that. 8 or 9 weeks later they're back at $43 so you close your long position for a $800 profit and maybe received some dividends in between.
it makes perfect sense. Its called hedging.
antoset83 1 year ago
@antoset83 can you explain more please
weld3z 1 year ago
Comment removed
antoset83 1 year ago
Maybe he'll sell them when he retires at 65 and pay $0 tax as a self funded retiree
antoset83 1 year ago
This has been flagged as spam show
@weld3z ok better example:
My uncle is a farmer.
In the late '80's he bought 5500 Wesfarmers shares for $1.20.
In 2007 these were trading as high as $42.20.
This is a profit of $220,000.
If he sells them he pays tax on that at maybe 40% (80,000)
If he Short sells them at $40 to hedge his risk in '07 because he knew a recession was close by and buys them back in '08 at $13 he's lost 10 - 20,000 but still has a portfolio worth 200,000 and hasn't got a tax bill for $80,000
antoset83 1 year ago
This has been flagged as spam show
@weld3z ok better example:
My uncle is a farmer.
In the late '80's he bought 5500 Wesfarmers shares for $1.20.
In 2007 these were trading as high as $42.20.
This is a profit of $220,000.
If he sells them he pays tax on that at maybe 40% (80,000)
If he Short sells them at $40 to hedge his risk in '07 because he knew a recession was close by and buys them back in '08 at $13 he's lost 10 - 20,000 but still has a portfolio worth 200,000 and hasn't got a tax bill for $80,000
antoset83 1 year ago
good luck finding stocks that double like that
lti12 3 years ago
why lock in your profits? Why not just sell and cash in?
PIMP16108 3 years ago
It all depends on your own goal. Suppose you want to keep the buy for a month, and you think that the stock may fall or consolidate next week. Then you short it to profit next week while keeping the buy.
Once you lock in your profit with buy and short of the same stock, it does not matter where the price goes. You can get rid of both positions any time in the future.
stockfessor 3 years ago
@PIMP16108
Over the summer I made some good money on LBSR. I took 50% profit every time the stock value rose 100%. If i had of cashed in on the first 100% I would have missed out on like 4 or 500% that I made when the stock rose further.
Of course if the stock lost value after the first sale it would have been a different story, but since you took profits already you haven't lost anything.
NFT2 1 year ago
very nice
PIMP16108 3 years ago
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Nice video. It was helpful, I was able to learn a few important things from this video. I am new to Youtube, can you please check out our most recent video and give me your honest opinion?
DrewDownsManagement 3 years ago
Keep the videos coming......... the behavior and the intentions of the big guys is really quite interesting
armageddondonut 3 years ago