It all depends what type of taxpayer you are - if you are an...

It all depends what type of taxpayer you are - if you are an investor then all you did was crystilise a gain which means you have to pay some tax - but you dont have that money because you have plugged it into other stocks. A good calculation (provided lgl is above these prices come tax time) would make your strategy not all that great.

It all depends on a combination of things. It is not purely making money. you have to take tax into consideration as well. There comes a time when putting a huge effort to beat the market is useless when yiou have to pay a considerable amount of tax.