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Jerry,
Very good words of wisdom! But this did not address the post. The
question as I perceived it was should the tax consideration be a part of
the trade. I find it very taxing to project price 3 days out, much less
18 months so that I can attain a tax break. I have to have a profit before
taxes can be considered. "...any trading is for fun and
games...entertainment, so to speak." Perhaps you would like to re-think
that statement.
Al Taglavore
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> From: Greatelto@xxxxxxx
> To: altag@xxxxxxxxxxxx; markjala@xxxxxxxxxxxxx;
metastock-list@xxxxxxxxxxxxx
> Subject: Re: Trading and taxes
> Date: Wednesday, February 11, 1998 12:02 PM
>
> Short term trading generates income which is taxed at ordinary income
rates.
> When you factor in state taxes, the tax bite can be well in excess of
40%.
> With short term trading, if you are successful, you are pretty much taxed
on
> an annual basis. If you are wrong, there are limits on using the losses
for
> tax purposes.
>
> Long term investors are accumulaters of wealth. The maximum tax rate is
20%
> (Federal) and this tax is not paid until the sale of the asset. It has
been
> my experience that long term investors accumulate wealth faster than
traders.
> Now there are exceptions to every rule and sometimes trading wins.
>
> I do both, but the big bulk of my assets are long term. Any trading is
for
> fun and games....entertainment, so to speak. When one experiences the
full
> cycle of long term investing, it is scary what one can accumulate. My
> recommendation would be to invest 70-90% in a long term program and then
play
> games with the balance. If you should be fortunate enough to trade
> successfully, then pay the taxes and smile.
>
> Jerry
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