Sold DBS at 17.59

DBS got a recent high of 17.9. Today is also the ex-dividend date for DBS. Meaning today it start trading minus the dividend. On Friday, the previous trading day, it was still trading cum dividend. I sold today and will still collect the dividend simply because those are the rules for the ex-dividend date. But anyway I sold off not because of the ex-dividend date. I sold because my trailing stop is breached.

On Thursday, I did toy with the idea that I should add a buffer for the dividend of 0.28 to my existing trailing stop of 32 cents, i.e trail by 60 cents. So that I may get the dividend as well. Come today, I am confirmed for the dividend, the trailing stop reverted back to 32 cents since it is ex-dividend. 32 cents south of 17.9, there is a nearby support of 17.6. Hence I used the support level as my stop loss level instead.

Thus I set my alert for 17.59 this morning, and later nearer noon it was triggered, and I sold off straightaway at the market.

Profit is $1.83 per share which is 5.7 times more than what I risked. Nice! Come 4 July 2013, DBS will pay me a dividend of $0.28 per share. Nice, nice!! : ? (slurping the cream off the cake).

Total profit is $2.10 per share! My reward is 6.5 times more than my risk! Yum! Yum! It sure tastes good :)