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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (4788)	8/24/1998 12:01:00 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78998

Thanks Jim: I like 'em! Thread: here's Paul Senior's Million Dollar Tip for knowing that you aren't beating the market: You will find this out at tax preparation time if you are alert. It will take you several years possibly to get to be alert. A clue is that your tax preparer goans (-g-)when he/she sees your Schedule D. Three things will happen to tell you you need to change: 1. You will look around for a second page for your Schedule D returns, because you will need it to complete the many trades in gains/losses for Short Term Trades (assets held under 6 months). 2. Your trades for Long Term Capital Gains/Losses easily fit on the 6 or 8 lines provided by the Schedule D form. 3. Your net of Long Term Gains/Losses is a gain. The net of short term gains/losses is either a loss or a small gain (that is, net short term profits are less than net long-term profits) Corollary: On schedule A, your margin interest expense is larger than your mortgage expense deduction. This isn't about the tax consequences of the capital gains tax. It's about trading vs. investing, and making money. Paul Senior