<<You should do the math, figuring in taxes>> - I did do the math. I approach trading like a business. True, not all my trades are winning trades - but I have an iron rule - cut losses immediately. I let the wins run. Statistically, this works out in my favor. With time, I've gotten decent at this. For the past 3 years, I have made significantly more, net - after taxes, commish and trading costs (feed etc.) than I could by buy & hold. There is one other consideration - IMO, this is safer than straight buy and hold. I know this is paradoxical in the view of many, as trading is seen as risky. But it allows me to get out of the market instead of riding a stock all the way down. And I can always jump into a rally. One caveat: it takes time to get good at this, and if you don't have experience, it's easy to lose all your money. I would never recommend trading to anyone, unless they are truly in a position to do it (capital, education, temperament).
Good luck.
Morgan |
