The Long and Short side of a trade on Dividend Paying Stocks???

Just For Thinking ...




Long

1. You may be sitting on paper losses; but collecting your dividends as Panadol to ease your heartache or headache. No other overhead charges!

2. You may be sitting on paper gains and happily collecting cash flow and laughing to bank with no overhead charges.

3. You can don't bother as there is no other external pressure upon you to do so. Time may be your friend. No?


Short

1. You may be sitting on paper losses; but still paying out cash flow on daily interest charges and future dividends.

2. You may be sitting on paper gains; but in the meantime "happily"  paying out cash flow on daily interest charges and future dividends.

3. You need to constantly watch out for your payback or cut back as there is an element of time pressure on you to reduce your overhead charges. Time is not your friend. Right?


What is the difference in Long and short of a trade?

Some cannot take pressure and don't like the idea of paying overhead charges while waiting.


Don't try!

It is not going to be fun.