@weststigers said in [Share Trading ASX \- Stock Tips and Discussion](/post/1117837) said:
ZNO opened at $1.54 today and up to $1.86 so far.
441 buyers vs only 60 sellers...announcement on ZNO's effectiveness against this strain of coronavirus due in the next day or 2.
Based on how the product works, it's likely there will be a positive result to the tests.
I would normally clip off my initial investment now, but will be holding on through this announcement.
You seem to be quite versed in actual trading. So far I've been more of a long term investor - I saw some opportunities I'd identified around 5 years ago, bought them and still holding them for a 50% profit over that time. I've topped up here and there using dividends and doubled down on one which lost quite a lot of value but I still believed had solid foundations and was a spec anyway.
So I've never been into trading as such. I think I'm mostly put off by capital gains tax, and aside from that am not overly invested in keeping track of the price charts regularly.
What are your thoughts on capital gains? Especially in short term trading where you're holding something for less than a year the taxable amount is on your entire profit. I think I'd be a lot more inclined to trade if I knew how to manage any capital gains. Just interested to know how you deal with it since it sounds like something you'd need to take into consideration often.
It's a good question - Ultimately, I don't look for day trade opportunities or short term stuff and CGT doesn't worry me.
When looking to buy, I look for 4 things:
1. Company fundamentals in good shape
2. A good/unique product compared with their competitors with management slowly, but surely increasing distribution.
3. Opportunity to grow in the market organically (i.e. outside of one off events etc.)
4. An upside story that *may* deliver short term gains
Ultimately, I have an SMSF and take a more active role, but it's always good practice to have an alert in place to tell you when a stock goes over or under a particular price - it just helps you to stay on top of what that company is doing and whether any new developments are on the way - hey, you might just want to load up and buy more if you like what you read about them from time to time.
I know a lot on here have trouble working out when to sell rather than when to buy. Personally, I watch the news and share price on my portfolio so I can exit when I need to. I tend to watch the smaller stocks more as they are more volatile - Once I buy, I just like to know the general sentiment in the market which gives me a better idea of when to sell as well.
Take ZNO - I bought it based on it's product and good results up to the $0.86 share price. I could see the company was increasing distribution steadily, which I thought would give good future gains, but the upside story was the coronavirus hysteria which puts it front and centre for potential short term gains.
CGT is the by-product of a profit - there's no point holding a stock too long just to save a few dollars in tax.
In saying that, my ultimate aim is to hold for 12 months+ to get the 50% CGT discount and it may factor into my calculations if I'm getting close to the 12 month mark. But, if a share needs to be sold, then you just need to sell it and pay the tax or risk losing whatever you gained in the first place.
As far as I know, I don't think there are any tax strategies to avoid paying your CGT, but ultimately, it's a cheap form of income tax if you ask me.
