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To: Dr. Id who wrote (3610)	8/28/2000 10:42:51 PM
From: beckya	Respond to of 4710

I also do long term investing. I have a number of different accounts, the trading account is relatively small by design —and profitable. I have no problem paying taxes. No one consistently wins, trading or investing. It's prudent to set stops and practice good judgment, in both cases, rather than passively let a sum decay. If you do some research on trading you may find some people do quite well at it. I agree, many, because of various factors, loose. But then there are plenty of long term investors who put together horrible portfolios, too. Even INTC won't last forever. Ask yourself: What would it take for me to get out? How big of a decline am I willing to tolerate? ... do what makes you happy. BeckyA

To: Dr. Id who wrote (3610)	8/28/2000 11:20:58 PM
From: beckya	Respond to of 4710

I also do long term investing. I have a number of different accounts, the trading account is relatively small by design and profitable. No one consistently wins, trading or investing. It's prudent to set stops in both cases rather than passively let a sum decay. If you do some research on trading you may find some people do quite well at it. I agree many because of various factors loose. But then there are plenty of long term investors who put together horrible portfolios. ... to each their own. BeckyA

To: Dr. Id who wrote (3610)	8/29/2000 9:01:51 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 4710

Hi Dr Id, You bring into the conversation an interesting point...taxes. The burden of our Uncle's partnership in our investing is always relevant. Each year I look at my Schedule D form for clues as to whether I am being foolish or smart with my activities. Compared to my Short Term Trading compatriots my portfolio turnover is very small. It averages 25% to 30% of portfolio value per year. This is in sharp contrast to the X00% turn over rates of many individuals these days as well as what the mutual fund industry is now doing. My rate is less than most "aggressive" mutual funds. However, in my case, there's no new capital coming into my portfolio from "earned income" since I'm retired. So, the only way for me to advantage my portfolio during times of market stress is to have "purchasing power" in reserve for those times. Going one step further, the only way to build that reserve is through profitably selling shares along the way upwards. It's then a matter of figuring what the gain must be between accumulation and dispersal to always be paying all costs including taxes and still have more left at the end. Because the majority of my selling is LONG TERM CAP. GAIN, the tax burden is mild compared to ST Trading. Because I buy equities for their long term potential, it's only during the first calendar year that any trades are penalized by ST Cap. Gains. After that it's kinder. I would have made more on VTSS as Buy&Hold, but my moderated risk methods have done okay for me as well. VTSS remains my single best performing stock I've owned since retiring to full time investing. Best regards, Tom