SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Biotech - Technical Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert Rose who wrote (42)4/3/2001 11:38:02 AM
From: Jibacoa  Read Replies (1) of 544
 
Rob:

To do short term trading in a taxable account is not very good.

The problem as you said is that if you make a lot of money you have to pay a good part of it in taxes and if in the next year you loose a good amount you can not apply that to your prior gains and are limited to a $3,000 loss that you can apply to your other income. (It used to be only $1,000)

In the old days if you had a good amount of short term gains, most of the large brokers could arrange to have their commodity people arrange for you a straddle in November or early December with the idea of selling the loosing arm by switching to a different month before the end of the year and that way you were able to carry the gains into the next year and if you were lucky sometimes you could end having a long term gain on the profitable arm of the straddle.

Another problem doing a lot of trading in a taxable account is the amount of paper work you have around this time of the year.<g>

In the old days, one problem with short term trading was that commissions took a good part of your profits. Now the cost of a round trip on a 5,000 shares block can be as little as $10.

IMHO the best place to do short term trading is on an IRA or ROTH IRA account. In the first one you don't have the paper work problem and you don't have to worry about the taxes until you start withdrawing money. In the second type you don't have any of those two problems.<g>

RAGL

Bernard
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News