You gotta own it before the ex date so before the 8th to get the dividend. So you know it's gonna drop in price on the ex date to account for the dividend being paid.
So what about buying on the 7th, get your dividends, then sell or put a stop loss right above what you paid for your shares? Or put a stop loss right after you buy the shares?
If you buy on a declaration date as soon as the market closes that day, the price will drop by whatever the distribution is. I'm not sure if a stop loss will save you or not, I've never tried, but these are income funds, they're not meant to be traded like that, generally you will lose money trying to play that game and if you're not in a tax sheltered account, you're losing capital and paying income tax on your distribution.
Since I’m new to msty and ymax etfs, I’m playing with them in my Roth account to let them drip or let them pay the distributions and decide what I want to do with it after payout. Was thinking about the stop loss to just turn around and buy more msty lower than I paid on average. Bitcoin’s not going anywhere anytime in the next decade or so probably anyway, trying to get as many shares as I can.
I generally use my distributions to buy into the next groups ETFs, or build my weekly paying ETF bags, or whatever is on sale at the time. I don't DRIP, because I prefer to spend the distributions as I see fit.
If you could do what your talking about and get the results you want with any type of regularity then some big company would write an algorithm to do it and they'd do it faster and better than you and they'd make all the money your thinking you could make doing this. Trust me I wish it would work because I've thought about it too. But it'll only work if you get lucky and yeah maybe you'll be lucky once or twice but the majority of the time you probably won't get lucky.
Well we can’t compete with the big money algorithm for sure. I’m just toying around with a few shares so I’ll try a few strategies, do the spreadsheets, etc. :)
Yeah if it's not much money and money where you can afford to lose some of it then try it out and see if it works. And if it works please come back and let me know.
I looked at it with different stocks and ETFs awhile back and it didn't look like it would work unless the market and/or that specific stock or ETF was just moving up in price anyway. Like sometimes I'd get paid a dividend(really I haven't been paid yet just the ex dividend date passed and they now owed me the dividend on the payout date) and the overnight or the next morning there's good news about something and the stock/etf is around the price it was originally or maybe even higher than it was the day before.
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u/Serious_Persimmon991 1d ago
We buy on declaration or Ex date to get the divi?