three reasons to hold one reason to sell, page-6

Hi ferrari308,

I note your points and they are valid. I think it all depends on your trading style and strategy (however may it be structured or discretionary).

I used to hold stocks for CGT discounted benefit but found it did not really give me an advantage. Sometimes 'net profit after tax' was better, sometimes I made not much more after holding say an additional 6 months. You need to factor is lost opportunities by holding vs. for the CGT discount.

What I do now is set stops on all trades which are relatively loose and always get out always when they trigger. My stragry is bases profitabily on an annual gain over a series of trades and this works for me.

As for the tax thing, one workaround is to setup a company structure and trade through it. If you are building wealth and don't need to pay out a distribution, tax is a flat 30% regardless of how long you hold. For me, I find this puts me in front overall because a) I get a tax discount vs. my marginal rate and b) it does not interfere with my trading decisions.

Personally i hold NDO and havn't been stopped out yet.

Cheers,

Bassmann