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From: johnl@ima.UUCP
Newsgroups: net.invest
Subject: Re: Building a portfolio question?
Message-ID: <109000017@ima.UUCP>
Date: Thu, 12-Dec-85 17:47:00 EST
Article-I.D.: ima.109000017
Posted: Thu Dec 12 17:47:00 1985
Date-Received: Sat, 14-Dec-85 23:39:33 EST
References: <1177@ihuxb.UUCP>
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Nf-ID: #R:ihuxb:-117700:ima:109000017:000:892
Nf-From: ima!johnl    Dec 12 17:47:00 1985


/* Written 11:01 am  Dec 10, 1985 by ler@ihuxb in ima:net.invest */
> As a new investor in the market my first goal is to build a working
> portfolio(i.e. buy and sell stock building capital). I only have a
> few thousand to work with. How can I retain my profits so I can 
> build a portfolio if the goverment takes its fair share?

Don't buy or sell very often.  Really.  Remember, the tax treatment is
better for stock held a year or more, and regardless of that, you lose
a few percent of your capital in commissions every time you buy or sell.
All of the evidence I've ever seen says that people who trade a lot do
worse than those who don't.  They may have more exciting lives, but they
are not richer.

John Levine, ima!johnl

PS:  You might look at an IRA even if you're not planning to leave your
money in it until you're 70.  The penalties for withdrawing early are only
about 10%.