Preferred Shares (Veteran's Point Of View)

I had a lesson about stock dillution last Sunday.

Kung di mo pa nabasa ay basahin mo muna ito.

(https://blogs.tradersdenph.com/a-lesson-for-new-traders-and-investors/)

Kung newbie ka sa trading ay you will view preferred shares as some sort of “investment” dahil sa dividends nito.

Nevermind about the “first priority” kapag nalugi at nabenta ang company. That rarely happens.

I discussed last Sunday na IPO is not the last time a company can get money from investors.

They can always sell more shares whenever they want.

Take JFC for example. They are planning to sell preferred shares.

They already sold preferred shares 3 years ago.

I’m not really into preferred shares but I can understand why others would go for it.

You will have a 3-4% dividend rate per year na income.

Your main purpose dapat kapag binili mo ang preffered shares ay para sa dividend at hindi capital appreciation kasi mahihirapan ka magbenta niyan sa market.

Nasa 960 pesos ang JFCA as of writing.

Nasa 925 ang JFCB as of writing.

Maraming mas better returns kung usapang dividend lang kesa dito but kung trip mo yung ganito then go for it.

Passive Income

Kung usapang passive income at dividends lang ay may isang option na might interest you.

Magkano ang pinakamalaking kinita mo sa dividends?

Magkano ang pinakamalaking kinita mo sa MP2 investment mo?

Take a look at this:

I have 20 positions with 1415 dollars swaps per position.

That is 28,300 dollars in total which is over 1.5 Million pesos.

Wala pang 3 months na holding period yan.

Yan ang swap fees and its being paid in dollars.

Walang sinabe ang Dividend ng stock at kita sa MP2 sa positive swap fees.

Ang swap fees ay fee na babayaran mo kapag hinawakan mo ang isang currency for more than 24 hours sa forex market.

May negative at positive swaps. Ang negative swap ay fee na babayaran mo kapag umabot 24 hours ang hawak mo sa currency pair. Ang positive swap naman ay fee na ibabayad sayo ng broker mo kapag umabot 24 hours ang hawak mo sa currency pair.

Gets na?

Kapag positive swap ay babayaran ka nila every 24 hours. Crazy diba?

Kapag trader ka na ang habol mo ay kumita mula sa swap fees, ang tawag sayo ay Carry Trader.

Mga terms lang yan. Ang mahalaga ay yung idea na wala kang ibang gagawin but hahawakan lang ang currency at sinasahuran ka.

Magkano kinita mo sa MP2 mo this year? How about dividends?

Wala akong ibang ginawa but bought the currency pair kasi pasok sa strategy ko yet I am getting paid.

Hahaha!

Ito ang totoong definition ng passive income.

This is how your money works for you.

I can teach you paano ito gawin.

I can explain more about swaps and carry trades sayo.

I can teach you how to trade.