increased tax incentives for long term investment as "outlawing" short term trading.
What else is taxing something do stop its use but outlawing it? I understand you postion as a long term trader very well. You just seem to have no ability to see all sides of an issue. there is a place for both long term investors and short term traders. the majority of the money made on Wall street comes from short term trading. Your tax would in essences destroy the entire economy of one of our largest cities forcing countless thousands out of work, it would curtail the creation of wealth in this country and would in the long run make america a third world country sice the ability of the middle and lower classes for upward mobility would be curtailed. All investing is a form of gambeling. I am just a small cog in the market that causes the market to have liquidity. With the subprime criss we have seen what illiquid markets can do. If realestate was a liquid market we could have repriced the asset quickly and effeciently instead of this slow unrelenting water torture that we have now.
hasn't been for awhile now. the recent Fed action shows that they get it now if they only would have got it 6 months ago all this would have been a bad dream. Glad I got out of full time trading. still made some nice coin on LEH yesterday for a nice two day trade.
This investor is doing just fine, thanks very much. By avoiding going on margin, never shorting, never using options, staying away from overpriced stocks that pay no dividends(like this one), and holding a mix of bonds and quality stocks (for an average of probably 5 years) I've averaged nearly 20% annual returns for the past couple decades.
While I don't expect those kinds of returns in the coming decade, I do expect an oportunity will arise in the coming year(s) to shift some money from long bonds into stocks.
Unlike you, I see no place in the market for "traders." It's the guys who over-react to the daily news that cause the volatility that we've seen recently. I'd like to see addition taxes put on gains made on short term transactions ... with no relief for offsetting losses. This country has to stop checking the markets every hour and get back to work.
get back to work? Oh yeah got to love making that xx/hr while the "smart" people are making more in a day than most people make in two weeks of "work". Tax short term gains? stupidest idea I've heard all week. when your live savings is tanking because of a stampede of fear on the street, it sure will be nice to know if you sell and have any gain just because its short term you will lose it all to the tax man. where do I sign up for such a great deal?
<<"This investor is doing just fine">>
--> Hey, me too!
<<"never using options, staying away from overpriced stocks that pay no dividends(like this one)">>
--> Ouch, you're missing a lot of leverage money to be made with options and if you're not at least buying puts to counter the downside risk in your big gainers you're making a mistake. BTW, GME isn't overvalued. It's simply gone down with the overall mkt as the risk premiums have unwound via multiple compression (a good reason to have bought puts against stock positions)...
<<"I'd like to see addition taxes put on gains made on short term transactions ... with no relief for offsetting losses.">>
--> LOL. No it's not a good idea to "regulate" how long someone needs to hold a stock. That just encourages people to hold too long while their 10, 30, 50%+ gain disappears because they held too long in hopes of reducing their cap gains. No offsetting losses? Brilliant (if you want to push money out of the mkt and cause even more people to save at a rate less than inflation in CD's and Sav/Check accts)...
<<This country has to stop checking the markets every hour and get back to work.>>
--> What about the people who retired early and live off their investments? What "work" are you referring to that we should get back to?...
<<"While I don't expect those kinds of returns in the coming decade">>
--> Why not? I know I am. It may not occur "every" yr but there's always a good investment out there. Shoot high and accept the bad yrs as long as you're consistently beating all the mkt averages...
--> BTW, I don't think lionel is doing badly (as you infer) because he previously stated he sold calls against his stock which means his basis is much lower than it would otherwise be and he'll benefit even greater as the stock recovers. Selling calls was a better idea when gme was in the mid $50's during Nov-Jan but recently it would be better to buy puts so that the upside isn't limited. The only downside of the puts currently is that increased volatility makes them a little pricy. Selling calls affords the opportunity to sell into those high premiums if you're willing to limit the upside though.
This has found a great place in the current market by using margin, never shorting, never using options, staying away from overpriced stocks whether they pay dividends or not, and holding only stocks and only a few ours to no more than a month. I've averaged 32% annual return for the last 3 years and I'm up 76% this calendar year.
Just because it isn't "your" way, doesn't mean it isn't a solid, viable, and profitable way.
Gotta go get back to work now.
NO we just have to make up a new set of investing rules........ SHORT EVERYTHING no matter what. The better the news short more.
GME could have announced that every single one of their stores was sitting on a diamond mine and we would still be down.
Whatever, I have plenty of time to wait for people with sense to get back in the market.
<<stores was sitting on a diamond mine and we would still be down>>
--> Mkt uncertainty/drop in confidence = multiple compression.
The stock will go up once the mkt is willing to pay more for earnings (i.e. the multiple will expand). This multiple compression factor is the "primary factor" holding the stock price down ("not" the max pain theory that people like to talk about).