Money Management: For Investing (Remake)
March 8th, 2010 | 
Author: 
The Blog Entry that Accompanies this Vlog is at: http://investorandtrader.blogspot.com/2009/06/money-management-for-investing-remake.html
My Daily Blog is at: http://investorandtrader.blogspot.com/
My channel at BlogTV is: http://www.blogtv.com/People/Airelon
My Podcast is at: http://airelon.podbean.com/ and embedded in the daily blog.
I have talked much, to date in this money management series, about money management as it relates to trading.
How does Money Management relate to Investing? I discuss that in this vlog …
NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance
Duration : 0:9:1
Posted in money management | 
Tags: Airelon, buyandhold, buyandholdisdead, commodityfutures, daytrading, diversification, dividend, DRIP, Forex, howto, invest, investing, options, positiontrading, stockmarket, stocktrading, swingtrading, Trade, trading, tradingforaliving
Tax free trading …
Tax free trading sounds great, but the downsides make it almost not worth it. You’re familiar with ‘Reminiscences of a Stock Operator’, right? The bucket shops that Livermore was talking about in the book are EXACTLY what the modern spreadbet companies do, just with internet access and wider range of instruments.
You bet on the movement of an index *derived* from the underlying index, so slippage, poor fills, price skewing are common…but there’s no tax. Swings and roundabouts really…….
Don’t forget Dan, …
Don’t forget Dan, people can only think one way at any one time! hahahah!
Good idea, but here …
Good idea, but here, once it’s sold (in the account) it’s taxable. :^(
But I do funnel profits from one account to the other (I do keep them in seperate accounts). Twice a year, I take all of my profits, take 2 1/2 % of them, and funnel them to the worst performing accounts.
It’s kind of a way …
It’s kind of a way of addressing the question of ‘how do you build up a $10k account?’. You in theory limit the growth of the trading account, but the tradeoff (no pun intended) is that you can beef up the investing account much quicker.
Is it appropriate to have crossover between the accounts, or should they be treated as totally separate, self-contained business ventures?
This has got me …
This has got me thinking some more. In the UK, we have the benefit (though it has some really annoying drawbacks) of being able to spreadbet, which allows completely tax free trading.
Therefore, how about taking the notional capital gains tax that you would have paid on the trading account if you were trading futures (for example), and then diverting it to the investing account as if it was money that was due to the taxman? Or should one keep the trading and investing accounts totally separate?
watch?v=R1SiI5LWCAY …
watch?v=R1SiI5LWCAY&fmt=18
and watch?v=jDdqWyUEr_8&fmt=18
How? How are they …
How? How are they contradictory?
If something is dead, it means it’s gone and can’t come back.
We’re in a trading environment at the current time. That changes. In 2003 to 2006 we were in an investing buying environment. I invested 60% of my money. We’re not now. So I don’t make investment purchases. But that can come back, and if anyone has used DRIP throughout that time period? They’re looking at HUGE returns.
1) “Buy and hold is …
1) “Buy and hold is not dead”
2) “we are not really in an investing environment right now”
(1) and (2) are contradictory!