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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (67624)	8/16/2005 2:31:20 PM
From: Seeker of Truth	Read Replies (2) \| Respond to of 74559

Hi Taikun, If a trading signal has a success rate of 80% that means you have made money with the signal 80% of the time but lost money 20% of the time. That's equivalent to making money 60% of the time and breaking even 40% of the time. I wonder if that's within the sampling error region. As for holding a century I think the Rockefellers have done so with no ill results. Most of London,Paris,Amsterdam, Stockholm real estate has kept its value and earned money for the landowner over the last 60 years, since Hitler killed himself. I see a difference between compounding for selling after one year as a medium term trader might do and selling after 10 years. The unpaid capital gains taxes compound into a goodly sum at the end when you pay the tax. Asuming the investment grows at 20% per year and further assuming that the capital gains taxes are 25% of the gain, which is the situation in Canada, then the annual return after one year is 1.15. The annual return after holding for 10 years and then selling is 1.17. The two percentage points matter. Anyway good luck with your hybrid strategy. I do realize that your taxes might be way less than in my situation. Maybe you will discover after years of experiments, which of your two strategies is more profitable on the average. Seeker for Truth