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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Bernie Goldberg who wrote (13000)	10/1/2000 9:20:16 AM
From: OldAIMGuy	Respond to of 18928

Congratulations Bernie, Post Grubbing 13,000 with so little FanFare!!! Guess I'll have to look around for yet another AIM Millennium Poster Award!!! There's many references in investment texts that say that investing decisions based upon tax implications are rarely good ones. This may be especially true with AIM. It's so rare that we have any losses after AIMing for a while, that "tax loss selling" becomes a thankful lost art! In the short term, sometimes we'll start an investment too soon in a price correction and then have to average down until the bottom is found. That leaves us with a pile of initial shares usually showing a significant loss. At that point, using "trader's mentality" it's tempting to sell the "expensive" shares and keep the "cheap" ones. Now, if AIM has directed someone to do the buying all the way to the bottom and they've stayed with the program for all of that, why wouldn't they stick around for the rest of the ride? My last blunder this way wasn't very long ago. It cost me a tidy fortune - much more than I "saved" on taxes. I sold about half my position in a stock at $1.50 as I'd accumulated shares at even cheaper prices than that. That half of the shares had been purchased from prices of about $6/share on down. Nice tax loss! However, with the current price/share at about $23, it just doesn't make any sense any more. At least I didn't sell completely out of the stock! Best regards, Tom