Dividend Question

Discussion in 'Ask any question!' started by T0rm3nted, Jun 30, 2016.

  1. T0rm3nted

    T0rm3nted Moderator
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    I was thinking about dividends lately, and it seems to me like dividends would be profitable long-term (obviously), but as a swing trader, wouldn't it be easy to just check futures a few minutes before after hours closes, if it looks like an up day in the market the next day I buy the DIV stock, then sell it the next day when the price recovers (since futures told me market was going up). Obviously not as simple as I just wrote it, but wouldn't that be logical?
     
  2. Gray Wolf

    Gray Wolf Well-Known Member

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    It's logical if you can time it correctly. That of course is easier said then done. :D
    And you have to have the discipline to keep the money available in your account to get back in when it dips.
     
  3. T0rm3nted

    T0rm3nted Moderator
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    I was talking about a one day trade though @JerryM. Check after hours today. If futures are really good, buy that stock after hours. When ex-div hits tomorrow and the market is up, sell at its high of day tomorrow.

    It's just an example, and obviously not super predictable, but wondering if it makes sense or not.
     
  4. Tiptopptrader

    Tiptopptrader Well-Known Member

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    With the volatility of the market that definitely comes with some risk. I have bought and sold int the pre and after markets when I can see the handwriting on the wall. I recently did that with CX on a 2nd tier buy in pre-market
     

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