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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: rgammon who wrote (15089)3/2/2001 7:32:41 AM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi RG, I don't dispute your research, but parts of reality need to be taken into account. Such things as paying taxes, 50% price declines and other minor items that come along with long term investing.

Tiny LIFO gains aren't practical in a taxable account. Just ask day traders. Also, the positive feedback to Portfolio Control during extended buying cycles tends to burn up the Cash Reserve rather rapidly when tripping daily buy orders.

Personally I believe there's almost as many answers to this debate as there are individual stocks available for one to buy. In other words, "It depends." There's too many variables to say that one method works "best" under all occasions with all stocks. With some stocks I trade more frequently, with others it's once a month on buy cycles and as often as possible in sell cycles. I let my experience with each equity guide me. That doesn't do the newbie any good, but that's what Mr. L's "by the book" settings are for; they'll do well with very good risk control.

With luck we can have a good discussion on this at AIM 2001.

Best regards, Tom
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