jaque, you make an excellent point about the increase taxes if you are in the upper tax bracket. If that were the case for me, I would buy and hold more. I mean no disrespect with my comments because I feel you have infinitely more knowledge about this than I do. I think what it comes down to is each person need to trade/invest in the manner that fits their situation. I only have 6 stocks in my IRA portfolio and can watch each one closely. Each year as I add to my IRA, I diversify a little more. I can pay attention to the technicals of each stock I own and trade accordingly. I don't have to take taxes into consideration and with almost $30,000 in school debt, it will be a loooooong time before I have money to invest in a non IRA portfolio. In your situation with a higher tax bracket, it makes sense to buy and hold. In my situation, it makes sense to buy low, sell high. I'm up more than 10% on DECK in a little over a week and I'd rather lock in some gains and miss the next leg up than see it slowly erode away. Good luck! Hopefully we'll both make money!
IMO...we retest high 40's-low 50's in the immediate term. The vix closing into the highs along with some of the market leaders sitting at critical support levels signals to me that there may be further downside to come. This stock being up over 4% today is nothing but a dead cat bounce.
Thanks Indian. It pays to be "lazy" as Buffett and Munger like to say lol.
Most of people on these boards don't know how to value a company so they rely on technicals. No wonder they are so trigger happy. They don't know what they own lol.
Chico, I can understand trading if it's for an IRA but for investors in taxable accounts you have to consider what a short term cap gain will really return the client after the taxes are paid. Especially when they are in the highest tax bracket. If rates go on up to 39% then it's really not a good idea to trade in the short term.
There are many hedge funds/llp's/mutual funds,etc. that show high returns of saying 17% per annum but what they don't tell if that most of the gains where short term and that they also charge high fees to manage your money. Point is you would do just as well compounding at 12% per annum with zero turnover and no taxes. Claude Shannon did even better at 28% per annum to 30 YEARS with almost no turnover! That beat's Buffett. How's that for beating the market lol!
Point is, How many wealthy traders are there? Yeah, a few do ok but not like the investors.
I somewhat agree. If this was on high volume, I'd feel more comfortable. However, given the situation with no news and low volume....
People on this board keep preaching the virtues of buying and holding, but I'd rather buy on the dips and sell into the strength. Rinse and repeat a few times and you've got a nice gain.
I didn't sell, but I have a narrow window between the current price and my stop loss.