3 WAYS TO BUY SHARES AT A DISCOUNT & CORE NUMBER COMPOUNDING || YIELDMAX & DEFIANCE DIVIDEND EFTS

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3 WAYS TO BUY SHARES AT A DISCOUNT & CORE NUMBER COMPOUNDING || YIELDMAX & DEFIANCE DIVIDEND EFTS

Рет қаралды 6,751

Күн бұрын

High-yield dividend Investing, Yieldmax, Defiance, Roundhill, CONY, AMZY, MRNY, FBY, PYPY, TSLY, OARK, APLY, NVDY, GOOY, NFLY, DISO, MSFO, XOMO, JPMO, AMDY, SQY, YMAX, YMAG, MSTY, ULTY, YBIT, CRSH, GDXY, QQQY, JEPY, IWMY, XDTE, QDTE, YBTC, YBIT, GDXY, CRSH, KLIP, SVOL
Khmer's Discord: discord.gg/K4bPMQjmrg
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Пікірлер: 43

@SoCalStevo 2 ай бұрын

Help me earn my RobinHood credit card! Just sign up for Robinhood Gold (not the credit card) with my link, this is not sponsored: robinhood.com/creditcard?referral_code=50cf1830

@viktorwolfe8333 2 ай бұрын

Oracle talks about ripping the profit. It is slightly beneficial with lower amounts, but highly efficient when you have a large share count, say, 1000 or more of a fund that recuperates after the ex date. But always remember to save back 25% of that profit for tax purposes.

@DriftoMunkeE 2 ай бұрын

Great explanation of core number compounding!

@SoCalStevo 2 ай бұрын

Thanks!

@danny1961florida 2 ай бұрын

Oracle has changed my life. great vid Stevo. THanks again!!

@SoCalStevo 2 ай бұрын

Welcome!

@spicytuna08 2 ай бұрын

personally, i believe in bitcoin to reach $1M eventually. so i am long on msty and cony. planning to do cost average optimally with msty and cony by buying on ex-div date. buy on ex-div date also takes a lot of planning imo but as you pointed out it is predictable. core compounding works well with amzy and for those where the nav appreciates. but like the comment below, selling it short term can be costly in taxes. thanks for another video with awesome clarity.

@johnwebb2522 2 ай бұрын

In the past, I've used the 200 SMA as a guide to buy my positions. If the price is below the 200 SMA, I have a buy signal as I generate more funds. As Yield Max and Defiance funds establish their 200 SMA's, I'll probably use that strategy as my guide...

@kf434 2 ай бұрын

I like how you focus on what really matters in your videos . Many other Yieldmax/Defiance KZfaqrs, rattle on too much about the details of the daily option prices and option trading. You must be a lawyer ? 😊 l have to say though, the video game in the background constantly changing is a little annoying 😂😂

@SoCalStevo 2 ай бұрын

Thanks! But I love my arcade...

@TheListPlanet 2 ай бұрын

Core number compounding has been around for a long time, they call it skimming. I have a few issues with it, some of it you covered well. In many cases you will be selling off at short-term capital gains rates. And if you pick an arbitrary number, and that number is below your cost basis, aren't you just selling some off at a loss? Doesn't your core number have to be above your cost basis to make it worthwhile? And if you don't move your core number up and adjust it with more shares, aren't you selling off even more at a reduced price? Most high-yield funds won't even allow you to do it, and the others you mentioned may not dip for months and months. I don't know, I'm skeptical.

@thehoopscoop 2 ай бұрын

Oracle claims he invented the concept, but scientists and mathematicians developed and proved this concept of trading in the 1940's and 1950's. I can't remember their names but effectively you can systematically gain from the volatility between 2 underlying by selling and rebalancing. This would still work even if the underlying did nothing but go straight up. Let's say you have $100 ABC stock and you determine to keep your portfolio at $100 ABC and $100 cash. The ratio is a 50/50 balance and so when ABC doubles your new core number increases, but the ratio remains the same. Now you have $200 ABC but only $100 cash, so you bring them back to even and end up with $150/$150 of each. Now if ABC sells off 50% you end up with $75/$150. You rebalance again and end up with $112.5/$112.5 which, even though the stock price over time literally went nowhere, you still increased in portfolio value by leveraging the volatility between a stable and volatile asset. A fun twist on this would be allocating JEPY in bull markets and SPYT during dips and sell offs. You collect maximum dividends and JEPY falls less during the sell off, so you can buy more of SPYT and then when markets rebound, SPYT grows faster so you then switch back to JEPY.

@thorasguardselectrician2013 Ай бұрын

It's different than skimming. But it is basically rolling your green day profits into red day extra shares to increase count. It only works good with big enough green days and deep enough red days. It requires patience and knowing your asset. But does work.

@mylifeonthebeach Ай бұрын

@@thehoopscoop oracle dude thinks he invented the internet and sliced bread

@davemedina74 2 ай бұрын

DCA for me

@lwr6762 2 ай бұрын

Quickly becoming my favorite channel

@SoCalStevo 2 ай бұрын

Thanks!

@roncraft2042 2 ай бұрын

Dollar cost averaging does get your average share cost lower. Since you invest a fixed amount of money on a specific date. If the price is up your fixed amount of money will buy fewer shares at that higher price. If the share cost is lower on your next purchase date your fixed amount of investment will buy more shares at the lower price. This effectively lowers your average cost per share. Personally, I just drip my distributions. I get the distribution and on the pay date it gets automatically reinvested. The ex date and pay date are generally just days apart, so the price is likely still low. It’s easy and automatic.

@SoCalStevo 2 ай бұрын

Nothing wrong with traditional DCA.

@jgonzalezny3197 2 ай бұрын

The third strategy is a tax nightmare if you’re a rookie you would have to consider capital gains tax, white washing, buying with unsettled funds, etc… I use both the 1st and 2nd strategy which I learned after going all in on TSLY in the beginning 🤦🏻‍♂️

@SoCalStevo 2 ай бұрын

True, the third is a taxable event so you wouldn't want to do it that often.

@janel9468 2 ай бұрын

Thanks for the explanation for core compounding. Was trying to figure it out after the live session he had with Khmer. Concern as you have mentioned is if it keeps going down

@SoCalStevo 2 ай бұрын

Remember also, selling shares for a profit is a taxable event, so do the calculations to make sure the gain is worth it and use the strategy sparingly.

@JG-DivMan 2 ай бұрын

The math for Core Compounding (i.e. skimming) works great for the right security in the right market conditions but isn't particularly tax efficient unless you have some share lots that you've held for a long time (i.e. long-term gains vs. short). Likewise, if you do this with a high-yielding stock/fund, you end up effectively getting double-taxed on some of the investment. You were taxed on the distributions then again on the cap gains when you skim (or "rip" as O likes to say). Of course if the profits outshine the tax burden and/or you simply don't care about having to pay taxes on it, then ignore the entire tax-related consideration.

@aliallami4054 2 ай бұрын

Third strategy is not gonna work because you will waiting so long to get your low price target, it may be take months or years, having that cash and missing dividend

@SoCalStevo 2 ай бұрын

Yeah I talked about situations it wouldn't work.

@mikewu9483 2 ай бұрын

switch between high yield funds, no idle on your $, there is always fund on low side, KLIP, Oark, iwmy, ULTY for now

@clinton4161 2 ай бұрын

Could be a great for an IRA since you don't need to worry about taxes.

@SoCalStevo 2 ай бұрын

For sure, a lot of people do that

@KBdivs 2 ай бұрын

Careful man now that oracle guy is going to make a video ripping you to pieces 😂😂

@dougmiller2937 2 ай бұрын

If you had a segment in your video where you played the arcade game, it would be like when Mr. Rogers would play "Picture Picture"

@SoCalStevo 2 ай бұрын

Hahaha great idea

@MattRaphael 2 ай бұрын

Stevo, You run into capital gains short and or long term issues with Core Number Compounding. Just a thought. I am studying taxation law as I am listening to this.

@SoCalStevo 2 ай бұрын

It's true, you don't want to do this too often as it is a taxable event.

@Tiger30001 2 ай бұрын

say you make 100$, 30$ goes on tax, still you make 70$ this way, so it is a win win situation even after paying tax, if you do this in IRA thats the best:)

@clinton4161 2 ай бұрын

TSLY did a reverse split. Since you now have less shares. How does that effect the distribution?

@SoCalStevo 2 ай бұрын

Splits, or reverse splits are taken into account when determining distributions.