Replies to post #2185 on DXI Capital Corp. (DXIEF)

[dmlabuda]

DEJ - Time for a minor price correction now back to around $0.41 (see chart below).

RE: Your previous post: The tax is really insignificant when you compare it against the potential gains from swing trading. Lets take stock XYZ. An investor and a swing trader both buy 10,000 shares at $1.00/share and the investor holds onto it until $5.00/share where he sells it for a $40,000 profit.

The swing trader takes a different strategy and does the folowing:

Buys 10,000 shares @ $1.00
Sell 10,000 shares @ $2.00 for $10.000 profit
Buys 12,000 shares @ $1.50
Sell 12,000 shares @ $3.00 for $18,000 profit
Buys 15,000 shares @ $2,50
Sell 15.000 shares @ $4.00 for $22,500 profit
Buys 20,000 shares @ $3.00
Sell 20,000 shares @ $5.00 for $40,000 profit

Investors profit is $40,000 total less brokerage fees and taxes.
Swing Traders profit is 90,500 less brokerage fees and taxes.

Question: Does the swing trader care that he has to pay a higher percentage in taxes?

DEJ - 15 min Candlesticks