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Al....
Thank you for the kind words on my "wisdom." I thought I did address the
post. Taxes are a part of any investment decision....regardless of whether
they are short or long term. However, taxes should not be the the over-riding
reason for making any investment decision. Fundamentals, technical analysis,
your particular approach, etc. are primary factors in an investment decision.
Taxes are secondary, but never-the-less, a factor to be considered. Failure
to sell a stock that has a radical change in fundamentals because one does not
want to pay the taxes on the profit, is plain stupid. But the refusal to sell
a good stock with bright prospects because of tax considerations, might not
be.
With the different tax rates, a long term investor has another arrow in his
quiver because of his lower tax bite. I might even say his odds of success
are somewhat enhanced (all investments being equal). I will always contend
that a trader "generates income" while an investor "accumulates wealth."
My statement "trading is for fun and games....entertainment, so to speak"
stands. Certainly I want to make a profit on each trade I position. There is
not one of us who doesn't!!!! What I am saying is that I have done extremely
well with an investment program that has been geared to long term growth yet I
have engaged in trading at the same time. I trade because I want to "beat the
system"....everybody out there included. I trade because I want to make
money, regardless of the taxes. I trade because it is challenging, which I
find to be fun. And fun is entertainment!!!! But I would never, ever
consider trading with my "serious" money. That I will always keep invested
long term. Hell, I retired early because of that program and I am now having
fun trading....entertainment, so to speak.
Jerry
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