I wasn't disagreeing with Lorne. I'm new trust unit and
need to get the process straight. In the past I bought mostly spec stocks. My usual strategy with
spec stocks has been to buy one lot, then divide in two.
Half I keep for the longer term (WSP, ABZ, for example)and
half I trade. If the trading goes well, I recover the
money at risk in the long term hold. Say, I bought 10,000
WSP at 1.50. If my trading can give me a 1.50 profit, then
I'm totally protected on the downside--which is important
with spec stocks. If it goes to 5.00, as WSP did, then
I've got the 7,500 from the trading and the 3.50 x 5
from holding. If the stock tanks the worst I can do is
break even. Doesn't always work, of course.
So, I guess I'm a middle of the roader, willing to take
a chance but wanting to also hedge my bets.
The idea of dividend stripping is new to me. Given the
costs of trading, even on line, I would have thought it
difficult to make much of a profit unless one is buying
large amounts of stock. With the price of ARC, GLH and
SPF, I'm not in the position to buy ten or twenty thousand
shares. That's why I asked about the minimum amount of
shares that would make this tactic successful |
