My point is that if you know a company is growing at a rate that will create say a 10% pa capital growth over say a ten year period, (throughout the ups and downs) you would end up better off holding it without selling, you would end up earning more than a guy that found a 10% idea each year that traded it and paid tax each year.Certainly benefits in that.
The only X factor is the capital gain of 10% or whatever maintained over the full year.
Cant see the point in making a 10% loss over a year in the attempt of cutting a tax gain.
Unless of course your earning big bucks and a deduction from capital loss comes in handy.
But that gets counter productive the greater the loss becomes.
thats very true not poker though lol i make good coin there
My point is that if you know a company is growing at a rate that will create say a 10% pa capital growth over say a ten year period, (throughout the ups and downs) you would end up better off holding it without selling, you would end up earning more than a guy that found a 10% idea each year that traded it and paid tax each year.
Off course you risk being wrong, but so does the guy buying and selling.
But not as well off as the guy who has a 30 % idea.
Different strokes -----
But not for a 30 % idea and a 10 % investment
If I'm covering the tax over and above from better performance then that is a better way of utilising my money.
10% no tax
30% taxed who's better off?
I get what your saying but there are more ways than just buy and hold.
im average at best lol thats why im asking questions not answering them , thanks though i think ill play safe for a bit and just keep it rolling while i learn more
My comment wasn't meant to be be an attack on you, I was just pointing out a couple of facts about Active trading vs longterm passive holding that a lot of people miss.
The first fact is that a completely in active, passive and lazy investor can get a good return on his capital by simply buying into an index that covers the whole market, by investing in everything and simply holding it he is guaranteed to get the market average return.
Now, the only reason anyone would avoid taking this simple passive approach that guarantees them the market average is that they believe they can beat that average.
Traders, believe they can beat that average by buying and selling at the ideal times, they will jump in and out of the market attempting to take advantage of their predictions, and some of them will succeed.
My comment was based on the fact that although some traders will succeed in beating the market average, those "extra returns" are being funded by the traders who failed. So as a group, on average, traders will fail to beat the average, and due to the significantly higher Trading costs etc, as a group they will under perform the inactive.
Agree.
There will be leaders that bolster the index.
Would it not make sense to just invest in them
i play poker and im skilled but lucky is just as important heres hoping im lucky on calidus lol
Hope so lolDoes a Book maker gamble?
Are you an accountant?Certainly benefits in that.
The only X factor is the capital gain of 10% or whatever maintained over the full year.
Cant see the point in making a 10% loss over a year in the attempt of cutting a tax gain.
Unless of course your earning big bucks and a deduction from capital loss comes in handy.
But that gets counter productive the greater the loss becomes.
quack quack lolNo a duck
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?