By Malcolm Stacey | Saturday 1 July 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Pifflers. There are many little tricks we learn over the years as we play the golden game of share shifting. As I’ve been in the racket since King Alfred burned his buns, I’ve probably used most of them. As it’s another boring weekend with no markets open, allow me to share a few of the best
Now the four dodges I’m talking about are nothing to do with balance sheets or future prospects of individual companies. They are general rules which sometimes do, and sometimes don’t, work based on the pop psychology of all your zillions of fellow players.
One of the best of my rules is to sell a share after a huge leap in the share price. The kind of big news that sends a share into space is almost always over-estimated. Investors pile in on a big new order, say, and the rush spirals out of control.
But eventually common sense prevails. I rarely sell on the first or even second day of the announcement, but I nearly always sell the lucky share on the third.
Another wheeze is to buy shares up to the final day before the declaration of full or half year results. But on the day before, I sell. As was illustrated by the share plunge of Photo-Me (PHTM) a few days ago, brilliant figures don’t seem to halt a plunging share price on results day.
Another trick is to study the daily list of big winners. It’s a reasonable assumption that the share will continue to rise the next day, so you might buy the stock on the first day. But wait until the late afternoon, because shares in the winner’s group often run out of new buyers as the day wears on. Yet that doesn’t seem to stop the share resuming its upward course tomorrow.
Caper number four is to buy a share on the day before it becomes ex-dividend. That way you’ll bag a juicy pay-out, without having to keep the stock for six months.
Now I know the share price will tumble the moment the stock goes ex- divi. But in my tired experience, the share often climbs back to its pre-divi price more quickly than it really should do.
None of the above stratagems is guaranteed.Nevertheless, I’ve sometimes made a lot of money out of them.
But don’t tell everyone in the Punter’s Return. God bless.
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