Newbie Lessons - All your questions answered
- Thread starter Sir Osisofliver
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I am wondering why is it different values for Market capitalisation is used in the ASX SP 200 for Rio Tinto ?
Google's website has them @ 120Billion
http://www.google.com/finance?q=ASX:RIO
while the
Fact Sheet link in the top left, they only have it at 31 billion
http://www.standardandpoors.com/indices/sp-asx-200/en/au/?indexId=spausta200audff--p-au----
http://www.standardandpoors.com/indices/articles/en/au/?articleType=PDF&assetID=1245177426604
Google's website has them @ 120Billion
http://www.google.com/finance?q=ASX:RIO
while the
Fact Sheet link in the top left, they only have it at 31 billion
http://www.standardandpoors.com/indices/sp-asx-200/en/au/?indexId=spausta200audff--p-au----
http://www.standardandpoors.com/indices/articles/en/au/?articleType=PDF&assetID=1245177426604
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Short answer: RIO is dual listed, half+ is in London. Also look up investable weight factor (IWF) for even more details
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Hello,
If seeking opinions/research on companies please visit that companies thread on the ASF. We dont discuss opinions on companies in this thread.
Cheers.
Hi there, Does anyone know what the tax implications are for shares acquired by dollar cost averaging.
i.e. I buy a XYZ at $10 in year 1, it drops to $5 during year 2 and I then sell them at $20 6 months after the bottom, that I so "skillfully" picked.
Let's say that my average cost is $6 when I sell the lot at $20. What tax am I going to pay (assume 30% tax rate).
Will the tax man calculate an average ownership time, and thus only charge me 15% or will he charge me 30%, based on last purchase?
Cheers
Daniel
i.e. I buy a XYZ at $10 in year 1, it drops to $5 during year 2 and I then sell them at $20 6 months after the bottom, that I so "skillfully" picked.
Let's say that my average cost is $6 when I sell the lot at $20. What tax am I going to pay (assume 30% tax rate).
Will the tax man calculate an average ownership time, and thus only charge me 15% or will he charge me 30%, based on last purchase?
Cheers
Daniel
Julia
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There are several threads covering this.
If you decide to sell shares, you are free to choose which shares to offset that sale against.
Obviously, you're going to choose the most tax advantaged way of doing it.
Example:
You buy 100 XYZ at $1.00
A few months later you buy a further 100 XYZ at $1.50
A few months later again you decide to sell 100XYZ.
Clearly you will do the calculation using the second parcel of shares purchased because your profit is going to be less and therefore you will pay less tax.
More to consider, of course, about how long the shares are held, but the above is the basic answer to your question.
If you decide to sell shares, you are free to choose which shares to offset that sale against.
Obviously, you're going to choose the most tax advantaged way of doing it.
Example:
You buy 100 XYZ at $1.00
A few months later you buy a further 100 XYZ at $1.50
A few months later again you decide to sell 100XYZ.
Clearly you will do the calculation using the second parcel of shares purchased because your profit is going to be less and therefore you will pay less tax.
More to consider, of course, about how long the shares are held, but the above is the basic answer to your question.
Thanks for your response. Yes I realize that's how I would control the sum the tax is calculated on.
However, I was referring to what the rate would be 15 or 30 %.
The basis of this is that I've been led to believe that 1) you can't chose which parcel you sell, you only have the average price and the total amount of shares.
2) if you own the shares for longer than 1 year you would only pay 15 %
Of course, this premise all falls if you can actually choose which parcel to sell.
In the case of E*trade, they would report to the ATO automatically, so I can't really control this myself (or maybe I can), but I only see one parcel of XYZ no matter how many times I've DCA:ed it down.
Anyway, not to bog this thread Dow, I'll scour through the other threads
Cheers
D
Julia
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Dannemann, I have sent you a PM.
Just a question regarding stop losses, i have been using 10% loss conditional orders and am really glad i have done this (bought FMG at $6.5). In such a volatile market though, do people change their profit/loss limits according to each share, or do you try and keep it the same through-out your portfolio?
pixel
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fwiw - as I can only speak for myself:
I never apply a stop that's based on my entry price or the size of my portfolio. The Market doesn't care one iota about my finances; to the Market I'm completely invisible.
My stops only depend on market activity wrt each particular stock. I expect a share price to rise, which should be the only valid reason I've been buying it in the first place; as long as it does, I stay; once it stops rising, I let my computer calculate the risk of a sizable reduction of the best value I might realise selling it. The size of the reduction is not only stock-specific, but also depends on the way it's being traded at every moment in time. Some stocks rise and fall by huge percentages in a day: Do I really want to run the risk of losing 50% of my profit? Or would I do better selling near the day's top if I observe a change of behaviour for 4 or 5 consecutive periods of 15 or 30 minutes?
Other stocks maintain momentum for days at a time, changing less than 1% on an average day. In that case, why worry if the rise pauses for a couple of days?
That observation led me to a firm conviction that one size never fits all, and it's individual settings applied to each trade that help maximise the overall return.
As regards my personal Capital Management, I control the risk by position sizing even before I place the buy order:
My chart tells me the risk point, where I'd have to admit I shouldn't have bought. Subtract that price from the buy price I'm going to place my bid, and I have the amount per share I'd put at risk by buying at the set time and price. If I'm prepared to risk, say, $400 (plus two lots of brokerage) in this trade, all it takes is dividing those $400 by the amount at risk per share, and I know how many shares I can buy.
Let me explain on a (random) example: ABU, the chart of which I just happen to have on display:
5.4c stop taken off 5.8c entry, divided into $400, allows me to buy 100,000 ABU; my position is therefore 100,000 ABU costing $5,800. As the stop level will only rise and must be exercised with discipline, it's the most I'll lose (well, if I can ignore the slim chance that ABU will go into a trading halt and call in the receivers just after I bought.)
Another quick calculation I do before I order: I have a guess at the potential target price that I may expect to sell at. I'm not going into the details how I achieve that; suffice it to say there are a number of ways which can come up with a statistically satisfactory hint. Let's assume for this exercise the target is 7.5c, which gives me a Risk-Reward Ratio (or RRR) of 4.25 (1.7c over 0.4c).
PS: Once ABU has risen to bring the stop level to above 5.8c, my trade is in the profit zone. If the move appears strong enough, I might decide to do a complete revaluation and risk part of the (paper) profit to buy some more ABU. But that's left for another lesson.
tech/a
No Ordinary Duck
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TMC has described fixed % stop
Pixel fixed fractional position sizing
Both valid
Pixel fixed fractional position sizing
Both valid
pixel
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Which approach do you use? And why?
tech/a
No Ordinary Duck
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Both
Why
Because both are valid and preferable at different times.
Discretionary trading I use F/F with a twist.
Systems Fixed Dollar and F/F depending on test results
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pixel, another pictorial view of the concept on this weekly chart of GOLD.ASX.
I am using a max of $1000 risk per trade including brokerage in the auto setup.
The chart shows the entry, stop and potential target which are the three items required.
(click to expand)
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I was looking into trading the FTSE, and I was looking at it's constituents, what I found remarkable were the share prices for the stocks, like BG. at 1430 pounds a share and there closing day volumes are so large I am getting arithmetic overflow exception in my code.
What doesn't make sense is that the volume in pounds traded seems too be to large, their top 20 stocks are greater than the US top 20 stocks, is this correct.
What doesn't make sense is that the volume in pounds traded seems too be to large, their top 20 stocks are greater than the US top 20 stocks, is this correct.
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Ln stocks are generally quoted in pence, so thats actually $14.30 pounds.
eg. BHP in London is 2200p not 2200P
wow thanks now it all makes sense
