End of Financial year activity? Why?

[shyguy]

I can't remember but I was told by someone that at the end of the financial year you can get a lot of selling or buying... this has something to do with Tax etc...

can someone please clarify what this was and why?

 

[pixel]

I can't remember but I was told by someone that at the end of the financial year you can get a lot of selling or buying... this has something to do with Tax etc...

can someone please clarify what this was and why?

It's an old wives' tale, sg;
the theory goes that investors will offload underperformers in their portfolio, incurring losses that offset earlier trading profits, thereby reducing Capital Gains Tax.

The reason why this is repeated regularly may have more to do with some people hoping to take advantage of gullible punters' inexperience, trying to talk them out of a few stocks they wish to by at lower prices.

If you hold an underperformer, the right approach is to sell it as soon as it drops through a support price. Don't wait for June to sell when it's more likely to be talked down even further.

 

[burglar]

It's an old wives' tale ...

Lies, Deceit, Ramping and Spamming and now your saying we have to put up with old wives' tales as well!!

Where's my rose coloured glasses?

 

[ChaoSI]

being asian i just tend to wear Jade all the time

 

[pixel]

being asian i just tend to wear Jade all the time

does it help you trade more successfully? Or does it make you feel jaded?

 

[ChaoSI]

does it help you trade more successfully? Or does it make you feel jaded?

nope can't say more success, especially in the last couple of days... everything's falling... whole portfolio is down 3% for a total of -13%
although a large portion of that is due to some prior investments that i cbb to sell cos i don't need the money.

as for the latter; quite so tho really i'm too optimistic like most newbies