Yes you are assuming it, you clearly advised the guy to close the trade on day 2. Assuming the price will go in your favor.
No, I didn't. I said buy the stock. Take the dividend. And you're done without having to make 247 stupid trades LOL for a measly .00781%
Consecutive wins (81) and consecutive losses (4) is something to work with. However, the "streaks" need to be forensically analyzed to cull any "hopium" holds and then the streak recalculated. Also as others mentioned, commissions, fees, and slippage must be included! The max consecutive stat is a sibling of sort to W/L ratio. Scalping, which clearly is what this methodolgy is, is the only trading style where W/L ratio has value. My current day opinion of W/L ratio differs from my distant past where W/L ratio was not at all useful. Good luck.
Amazing, I wonder why people look for strategies when they should just do what you say. You have to study a little bit about how dividends work, buddy.
Surely there's 2 elements to take into consideration though? If you buy a stock for a high div then you have to take account of the ex-div stock price too?
That's not how I look at it. A quick glance shows MSTY has paid 8 dividends totaling about $18.50. If you add that 18.50 to its current price MSTY's current price would be about $39.00,(that 18.50 never would have been deducted from its price). Which means you would be down on the position about $-7800. Where do you come up with "income" from being down -7800 on a position?
What kind of nonsense math is that? You can go to Drip calculator to see potential future returns. For past returns, I have a spreadsheet that imports every dividend paid so I can get a starting date, price and ending date price. Dividends received, capitals gain losses. Not all dividends are created equal though I mean anything less than 50% yield is a waste of time. Here are the examples with NO Drip! MSTY - Worst case scenario Start date 19-Nov-2024 Price 42.30 Investment $100,000 Shares 2,364 Unrealized gains/loss -$49,692.67 Dividends received $43,407.57 NAV $93,715 Monthly income $5,425.95 Since inception: Start date 23-Feb-2024 Price 21.60 Investment $100,000 Shares 4,630 Unrealized gains/loss -$2,037.04 Dividends received $177,632.41 Yield 177.63% NAV $275,595 Monthly income $11,842.16
Who cares! Read their prospectus... The distribution may include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease a fund’s NAV and trading price over time.