top of page

Buy and Hold, or Trade the Stock?

Writer's picture: Backspin TradingBackspin Trading

It all depends on your goals, and your stomach. Dividend stocks offer a great opportunity to make awesome interest income. You have to invest a healthy amount of cash, but if it is a stable stock, you can ride out the price wave and just focus on your period dividend check. Another benefit to dividends is that they are taxed at a lower than normal rate. However, when buy and sell is done correctly there are big profits to be made. Although the taxed rate is higher. My hybrid method: I trade only dividend stocks. If the profit to be made at any moment exceeds 2 years worth of dividend payments, then that stock is sold. You can always buy it again on a pullback. Stick to a handful of stocks that you can grow a relationship with and slowly build up.

Comments


bottom of page