Not really. That's just an IRS rule for determinin
Post# of 75357
(Total Views: 508)
Posted On: 10/24/2017 5:18:51 AM
Not really. That's just an IRS rule for determining long or short term capital gains tax rates. Short term investors, or "traders" need to pay attention to that much more so than actual long term investors.
Following the Whitney Tilson and Anderson Cooper highway robbery of Lumber Liquidators, I talked a co-worker into investing in some beat down Lumber Liquidators stock. He was skeptical, but I assured him the stock would recover nicely after the bash fest ran it's course and they moved back to profit and nice margins.
I told him to hold long term and the returns, averaged across a couple years, would beat the hell out of ALL of the diversified choices most of his buddies were in. I also warned him not to fixate on it because it could even decline some before it goes back up.
It paid off nicely. In just over two years we more than doubled our money for gains that averaged out to over 100% per year, even though the gains weren't actually realized until the end of that holding period. Nevertheless, he understood the concept much better, and I was glad to have helped.
We, like many, work for a large corporation during daylight hrs. when the market is open and can't be flipping stock as our primary source of income unless we quit our jobs. That's coming, but I still lean towards long term investments as my primary method.
I like the in and out fast trading they do on Sheepwolf's board, and I've made money doing it, but you have to spend a great deal of time "on it" and it's easy to get burned if not extremely careful due to the HUGE level of manipulation by both MMs and pro flipping groups.
Much more leisurely to do the research and go with your gut on a long term. People should still diversify, ESPECIALLY when investing in OTC start ups. There are way too many possible snags that start ups can encounter to assume it's guaranteed to succeed. If there's a very good chance it will, as with Rocky Mountain High Brands, I would much rather get in early and ride the storm.
If I lose it won't wipe me out because my investment capital is diversified, but I still see this as a winning bet. Just my honest opinion, of course, and I'm not about to try and affix company achievements to a timeline since I've already seen about a 12 month delay from my original guesstimation. That's the way it goes with start ups.
Following the Whitney Tilson and Anderson Cooper highway robbery of Lumber Liquidators, I talked a co-worker into investing in some beat down Lumber Liquidators stock. He was skeptical, but I assured him the stock would recover nicely after the bash fest ran it's course and they moved back to profit and nice margins.
I told him to hold long term and the returns, averaged across a couple years, would beat the hell out of ALL of the diversified choices most of his buddies were in. I also warned him not to fixate on it because it could even decline some before it goes back up.
It paid off nicely. In just over two years we more than doubled our money for gains that averaged out to over 100% per year, even though the gains weren't actually realized until the end of that holding period. Nevertheless, he understood the concept much better, and I was glad to have helped.
We, like many, work for a large corporation during daylight hrs. when the market is open and can't be flipping stock as our primary source of income unless we quit our jobs. That's coming, but I still lean towards long term investments as my primary method.
I like the in and out fast trading they do on Sheepwolf's board, and I've made money doing it, but you have to spend a great deal of time "on it" and it's easy to get burned if not extremely careful due to the HUGE level of manipulation by both MMs and pro flipping groups.
Much more leisurely to do the research and go with your gut on a long term. People should still diversify, ESPECIALLY when investing in OTC start ups. There are way too many possible snags that start ups can encounter to assume it's guaranteed to succeed. If there's a very good chance it will, as with Rocky Mountain High Brands, I would much rather get in early and ride the storm.
If I lose it won't wipe me out because my investment capital is diversified, but I still see this as a winning bet. Just my honest opinion, of course, and I'm not about to try and affix company achievements to a timeline since I've already seen about a 12 month delay from my original guesstimation. That's the way it goes with start ups.
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