i TRADE m-reits, they are too risky to buy and hold. Never expose you principle to a vertical decline and always take the highest lowest tax yield. If you do 4 trades, between the high and low for the quarter, you end up with $8-10 short term capital gain. If you buy and hold you expose your capital to a vertical decline loss, and you only get the $2.64 divy plus maybe $4 max cap gain or 2 cap gain or no gain, so say average $2 plus 2.64 = $4.64 versus 8-10 short term cap gain, with minimal exposure to vertical decline. Think of the analysis like this, in buy and hold you have to buy 365 days of insurance against a vertical drop versus may 90 days of insurance for 4 short term trades per year that total holding the stock for 90 days or less. So in my scenario, you avg. $9 in gain and insurance cost is $1 so I net $8 short term gains. In Buy and Hold you get $2 cap gain +2.64 divy minus $4 for full year insurance which leaves you $4.64-4.00 = $.64.
The difference is more than 12 to 1, trading is the smart way in this unstable market.
This is the weakest time for M-REIT'S, I believe tax loss selling. Also, those who bought on the low last year in Nov-Dec., have captured 4 dividends and a 4+ capital gain, these guys may see that as a blessing and take some or all, and probably more will take ALL their gains this year at the LT , 0-20% versus the 10-39.5% regular rate plus the addl. NIT tax on (Net Investment Tax) for the Affordable Care Act. There is also a NEW TAX FOR HEALTH CARE, LINE 61 FORM 1040, CALLED HEALTH CARE INDIVIDUAL RESPONSIBILITY TAX, ON THE 2014 FIRN 1040. Lots of new taxes on 2014, so alot of sell decisions could be affected, especially if the taxes are misinterpreted by the CPA's and Lawyers, look what happened to American Realty, oops we goofed and understated our financial, lots of changes, all the markets everything is very unstable, massive phase changes occuring everwhere on multiple variables. VERY UNSTABLE TIMES.
Those limits are for small fry, amateurs. The big boys can bid pennies on the dollar. One of the big boys just bought a 3 year old 4 Billion dollar Casino in Atlantic City for $100 mil., 97.5% discount from the cost price, only 3 years old, it is the newest most expensive one on the strip that recently closed check it out.
If you hold a M-REIT in a regular (non-IRA) ACCOUNT, the non-taxable part of dividend called return of capital which is not taxed and reduces your cost basis, so you only pay taxes on part and in some cases for MLP's on none of the distributions, which are tax credits etc. for drilling. Puting them into an IRA (traditional) insures they get taxed when you withdraw the money. Hence, why waste the tax deduction part. M-REIT'S are probably OK for ROTH ACCOUNTS, because distributions from them are never taxed again. But like I said, each persons scenaria is dependent on other variables and this has to be analyzed based on specific circumstances of each individual. In general, put M-REIT's in ROTH Account, because you don't want to take tax benefits as adjustments to your tax return in the year you make contributions, because all the dollars will be taxed along with the earnings (100%) whereas some of the earnings should not be taxed at all ever, because they are a return of capital (non-taxable).
YOU BOTH VERIFIED MY PROPOSITION ON A PREVIOUS POST THAT THE FINANCIALS AND THE MARKETS ARE MANIPULATED, THAT IS WHY WE HAVEN'T HAD ANY LARGE NUMBER OF DOWN DAYS MORE THAN 300-400 POINTS. If there are no bids or only one bid and all sell orders, $1.00 is the fair market value, especially in a overpriced markets like 1929 and 2014. So, adjust you FUN BID to 50% of the current last trade price. Adjust that bid on large down days to get an even lower price or go to brokers that don't have limits or get the professional trading software.
Also it wouldnt stick if he got hit there on a flash crash
there is a limit of 10 to 15% below the prev day
thats why you now see very few flash crashes - instead you see mini 9 to 14 percent flash crashes - because bids are stacked near the limit - more then the limit and the trades will most likely be busted.
We need Bozo Klumps on the PSEC MB. But it would not happen, Bozo is a one bridge Troll !
Not according to my CPA.
He does not like the MLP's in my IRA.
No issue with AGNC or ARR.
I also have LNCO, which has no tax implications for an IRA.
The traders you are referring to in the 1920s were floor traders__you cannot enter electronic bids like you are posting about. Certainly you do not have a seat, lease a seat and could never pass the exams to get on the floor.
During one of the courses we offer we do put students on the floor after exchange close and run a recorded trading session to enable them to use hand signals and fill out the tickets for backroom order reconcile. However you could not even last in the class long enough to get to that point in the course__because you are a fawking idiot!
He/she posted about seriously putting in a bid for stocks such as Apple at $1. I have three equity brokerage accounts one that is internationally linked and also linked to commodity and Forex trading__I tried to put in a bid for Apple at $1 in all three__and received similar error messages from all three__Fidelity's is copied below.
(000906) The limit price you have entered is too far away from the Last Trade price for this security.
Please use the following guidelines when entering your limit price:
For buy limit orders in which your limit price is below the Last Trade price, your limit price can be no more than 50% away from the current Last Trade price.
For sell limit orders in which your limit price is above the Last Trade price, your limit price can be no more than 50% away from the current Last Trade price.
Again chumps proves he/she does not have a clue!!
everyone new this was coming ,how could they not be on the right side of the curve???
Knowing Gary Kain, it's definitely going to be a passel of the wrong kind of swaps, and then some.
Sentiment: Strong Sell
you utilize the same methodology as the farmers almanac you add nothing intellectual to this board what do you get from the trolling? attention? buy a dog
Sentiment: Strong Buy
What color is the bench you sleep under at night? In cash for a year? I've had a fantastic year, despite the pasting I took not paying attention to the mREITs when the Fed started talking about ending QE last Spring.
Your problem (okay, the one I'm going to illuminate with a narrow light right here) is you don't know how to diversify. BTW, you should be piling back into oil now. It's pretty much done getting killed. Winter is coming. The Arabs will make their market-share gain, mess up the Canadians' pipeline plans, set their derivative bets, then tighten their spigot once again, and we'll be back to wondering if we can make enough electric cars.
But that's not urgent. Watching AGNC is. The talk in the Spring took the SP well below BV. That needs to reverse. Then the spread will drive the company's actions. It will be like reversing the Chicago river. Good for everyone.
I am in cash and I only trade. I am not long anything since last summer. I sold all my oil stocks, which I documented on this board months ago, some as much as a year ago. I got out with $1-2 of the highs. BP sold $53, went to 39. XOM, COP, all of them, I had a basket of them. Just sitting in cash watching everyone else loosing. I am studying FLASH CRASHES or VERTICAL DROPS in stock prices and developing strategies to profit off them. I bought OXY in a vertical drop at $81 and sold a $91 a week late, it now is 86-87. The next vertical drop in OXY might be from 87 to 77 and I will try to get in at 75-76 in an oversold condition reflex rally. I perfectly timed the OXY trade.
Second Strategy is setting of a "FUN BID" strategy that page boys and stock clerks used in 1929 and 1931 where they put in unrealistic "FUN BIDs" to capture free fall market orders on VERTICAL DROP days. Say you want AGNC, you think it is good but know there is alot of selling and markets might become unglued, you put a bid in for $1.00, and your dreams may come true. Don't put any other restrictions on the order, just a LIMIT price bid $1.00. Fish around for bargains on VERTICAL DROP days, it is highly probable in a uncorrected 5 year bull market, to have very LARGE VERTICAL DROP days, in sequence too. Good luck fishing with those $1. worm bids.