Dennis,
My problem with you is the comment about people like me using the excuse of taxes as a cop out for not trading, and about the comment about people like me having a "mantra" regarding long term investing in EMC. Did you buy EMC at 70 watch it go to 135 and then sell at 108 in a taxable account?
I'm 95% in a taxable account at very high IRS margins and State of Connecticut Income taxes that total 40% right off the top of any short term capital gains. So if I were you, and bought at 70 and DID sell at 135, $26 of my $65 short term capital gains goes right to taxes. So, in effect I would have sold at equivalent of $109 for someone in a 401K. Unless I *Knew* that it was going to go *Below* 109, why would I trade it? Especially when I plan on holding EMC for 5 to 10 years if it is the company it is now, and I will be retired at that point, living in a state without an income tax, and at a lower IRS bracket?
You talk about 60% gains for you so far this year. Well, I've got 60% gains or better in stocks like Tellabs and Compuware this year as well. Stocks I bought for the same long term time frame as EMC. If I sell, those gains get cut 40%.
So, my mantra for me is long term, and taxes are the primary reason, not because trading is "damn hard". So, having to watch your constant touting of your trades and techniques is one thing, but snide comments that I would say *were* making fun of someone, isn't appreciated. |
