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Politics : Formerly About Applied Materials
AMAT 230.92+3.1%Nov 24 3:59 PM EST

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To: Sun Tzu who wrote (38095)10/11/2000 6:27:12 AM
From: Alan Siegal  Read Replies (1) of 70976
 
And do you think that is a better proposition than buying for every 5 points up?
The actual outlay is the same, but when the time comes to sell, you're more likely to pay taxes on long-term gains.

Also, if you buy on the upswing, how do you know it's the real thing and not a dead cat bounce? Do you wait until it has gone up 15 and shown two plateaus? When you buy down, you don't have the nagging feeling you missed the bottom. You DO get the bottom within 5 points.
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