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Posted On: 04/12/2017 1:32:53 PM
Post# of 3935
Re: 1chiarajolie #2485
Especially when considering the tax implications for trying to flip a 50% retracement.
To illustrate:
Let's say the slick trader sells at close to a high of $0.25 last month. And let's say those shares were purchased at $0.05. Mr. Slick will net $0.20 and Uncle Sam will ask for $0.06 of that $0.20 net. Slick Trader will then have $0.14 to reinvest for re entry. This slick trader wont want to "catch a falling knife" so he will wait to see a clear reversal / bounce off the 50 % retracement at $0.12. After the stock starts to bounce up he will buy with confirmation and get in on the move up at $0.14 when factoring in a little "slippage". Mr Lucky Slick Trader will now have the same amount of shares he had at $0.25 and will have spent hours checking the charts and biting his nails.
Be strong! Go long! And give your greedy bomb loving uncle no more than $0.15 of you $1.10 shares.
To illustrate:
Let's say the slick trader sells at close to a high of $0.25 last month. And let's say those shares were purchased at $0.05. Mr. Slick will net $0.20 and Uncle Sam will ask for $0.06 of that $0.20 net. Slick Trader will then have $0.14 to reinvest for re entry. This slick trader wont want to "catch a falling knife" so he will wait to see a clear reversal / bounce off the 50 % retracement at $0.12. After the stock starts to bounce up he will buy with confirmation and get in on the move up at $0.14 when factoring in a little "slippage". Mr Lucky Slick Trader will now have the same amount of shares he had at $0.25 and will have spent hours checking the charts and biting his nails.
Be strong! Go long! And give your greedy bomb loving uncle no more than $0.15 of you $1.10 shares.
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