Gold price, page-10708

@Windham14

I think it is just a different mentality than that of investing into a company for the longer term.

You have to be ready to cut positions early if they go against you. But equally if you are trading for income you can't be stuck sitting in stocks that aren't moving.

In my opinion the idea is to find hot sectors/stocks try and find entry at support or on a breakout when you know there will be volume and movement and then from there have an exit strategy in mind. "I want to make 20% and get out". Or "I want to sell into this news item" etc etc.

As for the comments about tax someone mentioned yesterday. That is not a simple matter. Some traders are classified as carrying on a business but to do so you have to meet criteria such as having a trading plan, high turnover, obviously trading for cap gains and not dividends and so on. If you meet this criteria then your gains are treated as income not capital. i.e losses are negative income and can be used to reduce positive income and are not capital losses which have to be carried forward. Conversely there is no CGT discount for holding greater than 12 months. So beneficial vs not depends on the individual and more importantly if they can meet the ATO's criteria to be classified in that way.