Comments on: Even a blind dog finds a bone some days…

By: GFK

GFK — Thu, 06 Oct 2005 19:32:43 +0000

correcting the line in an above comment, the saying goes:

“Bulls make money, Bears make money, Pigs get slaughtered.”

By: incognito

incognito — Tue, 04 Oct 2005 17:53:03 +0000

Thanks W So Vason, good advice, especially the trader tax status one. I’ll have to look into that. I will have no income apart from trading in 2006, unless I find a job for the summer, but assuming no. Ideally any cap gains I want to try to defer until then, and take as much tax losses as I can in 2005. The ordinary income treatment of gains really piqued my interest. Presumably, without normal income my tax rate will be super low (unless I make a killing in the market). I’ll have to look at the tax table to determine and calculate estimates for both cap gain and ordinary scenario. Let’s hope I keep my gains until 2006. Excellent tip!

By: w so vason

w so vason — Tue, 04 Oct 2005 17:31:24 +0000

There are four rules traders live by:

1. go with the trend. The trend is your friend.

2. bulls make money. bears make money. pigs never do.

3. if you keep your head when all those about you are losing theirs, then you haven’t heard the news

4. A speculator who dies rich has died before his time.

Although long term price movements are rational, short term movements are random. In the long run yyou are an investor, in the short run a gambler. If you gamble only in stocks with good fundamentals you can either take your losses like a true gambler or become an investor.

Also, take a thorough look at past tax court cases on traders (go back to 1920) to determine if you are one. You will be pleasantly surprised
at your status and its benefits.

By: incognito

incognito — Tue, 04 Oct 2005 17:08:36 +0000

MP, glad you like. Yes, I’ve had my ass handed to me on more than one occasion. Half of it is luck. Sometimes the way I look at investing is to increase your chances of getting lucky. Jonathan pointed me to a book “Fooled by Randomness”. I say that guy found the magic bullet to getting rich: write a book on how to get rich.

By: MP

MP — Tue, 04 Oct 2005 16:12:02 +0000

I got my ass handed to me a number of times trading individual securities. I never took the time to do the planning and research required. I gave up and now rely on mutual funds.

It sucks to watch other people make out well on decisions you know you are smart enough to have made if you invested the time in it. It sucks worse to get your ass handed to you. So I’ve turned into a big puss when it comes to investing, but at least I’m not losing anymore.

I’m still mulling over doing a bond ladder, as was suggested on a previous post. I appreciate the investing insights mixed in with the other content here. Thanks all.

By: incognito

incognito — Tue, 04 Oct 2005 15:52:48 +0000

Nice Sandy. I get that feeling too that the 99-2000 greed is returning. Good and bad. Good that there’s money to be made. Bad in that there could be another blow up. We’ll see. This time, it’s different eh? haha

By: Sandy P

Sandy P — Tue, 04 Oct 2005 14:40:29 +0000

I could have bot more CME at 170, but I followed Brinker’s 4% rule. Out $15K in 4 months.

My 90s greed is returning.