there is a time and place for trading, and if you hold AGNC in a tax advantaged account, and have some conviction on something like another SPO, trade away.
right now, it seems that the peasants are trying to buy the upcoming dividend. if they succeed, i intend to sell my tax advantaged shares just prior to ex, and buy them back at the SPO-ish price.
the taxable shares will sit tight, as i do NOT want to reset the capital gains clock right now.
I started buying and holding in 2000.
There are pros and cons to each strategy but deriding people who trade this, is a bit misplaced. We had examples of rimboomer, xion etc. with 30+% returns this quarter. Why are you interested in telling them how it's done?
The only way to make a higher return than holders who buy at opportune points in the cycle is to use the magical leverage of options, which also leverages up your risk, lowers your liquidity, and charges you much higher percentage vig in fees and spreads. You can indeed make hundreds of % of annualized IRR with simple acts of boldness that actually have more underlying them than first glances, but you can also get your lunch-money taken away by black swans, hungry hungry hippos, Greeks bearing gift horses, and the day Ben Bernanke finally says, "what the f.uck," and up-ends his worldview.
Do your DD and YMMV, I'm trading options but I'm also keeping a base in the shares to smooth out the ride.
Actually Jet my return for this quarter net of fees and commissions was 126%. It will take a long time for a buy and hold strategy to come up with that kind of yield. I migrated from a buy and hold strategy to option trading only starting last year and for me personally I sleep better now than before.
GL2UA and go AGNC and MTGE.
"The truly smart play here is to buy, collect the div and hold for the great cap gains to come. Option fees, taxes, and minimal gains or losses (relative to buy and hold) are the reward for the impatient, ego-maniacal traders that think they have a prescient, mind-bending-power-lock on the price movement of stock. But it takes a much stronger will power to buy and hold than most traders possess, IMO. "
I am so glad people like you are in this world. You make what I do easy. ;)