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Re: The Grabber post# 38011

Friday, 08/29/2014 3:15:11 PM

Friday, August 29, 2014 3:15:11 PM

Post# of 47066

As to one being advantageous over the other? I don't know. But I've stated a number of times out here that, to me at least, there is nothing magic in the market about a week or month


Having broadly seen little difference between monthly and quarterly reviews rewards (trading smaller amounts more frequently or larger amounts less frequently), quarterly has a few additional benefits. For one you trade less so costs are lower. For another its less effort. Thirdly it enables you to better match 'cash' holdings with periodic AIM reviews (such as holding bonds with 3 months between maturity so you have cash-in-hand at each review).

That's more appropriate for a broader index/fund however. If the AIM'd asset was a single stock or was something that zigzagged repeatedly/wildly, then shorter periods between reviews might be the better choice.

One thing to keep in mind if trading relatively frequently is that gains can be taxed differently for shorter term gains (less than 30 days) than how longer term (>30 days) gains are taxed.

Another thing to note is that Tom and others apply a 30 day minimum between consecutive buy trades to help slow burning through finite cash reserves too quickly.

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