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Trading 10 baggers, Tax, and Feeling...

Discussion in 'Shares' started by wdongli, 2nd Dec, 2010.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
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    1,292
    Location:
    Perth
    Anyway I got the tax return done for 2008/2009 today. Did feel it is nice for 10 baggers in the market but surprised how much would be paid to tax office.

    When I work for salary, the tax has been deducted, so every year I get used to get some money back since negative gearing. But after spending the time between 9am - 1.30pm with my tax agent, I just felt the tax was too high, which asked me to pay $16,000 more for the tax even I have paid the standard tax for my salary.

    It is happy thing to get the 10baggers and it should be a good news to pay more tax since you have got more. However at different time and place, we could get the different feeling based on the same fact.

    Do wonder how many time I am fearful or greedy when I should not. Objectivity sounds simple but hard to get to human. This financial year I have locked some profit from some winners from my dirty-cheap fishes. It seems I need to prepare to get my feeling right to pay the tax.

    How about this financial year and the financial year of 2011/2012? Do hope I could pay more tax with the locked profit from more 10 baggers than 2008/2009. In the market now I do feel the tax is not so bad and love the 10 baggers than anytime off the market.

    Hope all of us get 10 baggers and feel headaches when paying the tax after the locked profit in our own pockets.
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Location:
    SE Queensland
    If you are paying more tax then you are making more money! :D





    J.
     
  3. wdongli

    wdongli Well-Known Member

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    Perth
    Logically right but we instinctively don't follow logic!

    Hi Johny_come_lately, it is perfect right we should be happy to pay more tax logically.

    We do too many things logically not right but instinctively let us feel good in the market. We are not so stupid that we don't know the logic but we just could not harness our instinct for enjoyment or quick gratification. It sounds OK for most of the traders since they play in the market for it. But you just wonder why the investors who talk about fundamental and value everyday, buy at the peak and sell on the fire too.

    How could we let our instinct to run when they should run, which we really need for family and our social life, and shut it out from our judgment and decision in the market? Could we get this kind of capability to harness the instincts? Could we be sure the harness is effective when everyone else is crazy and manic? How could we get this points?

    We all don't want to burn the money but most of us do! We should be happy to pay more tax but most of us do curse the tax office to rob our money away! Yes let us worry how to get the money first and then let the tax officers to stay where it should be.
     
  4. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Location:
    SE Queensland
    Most people hate paying capital gains tax. But if you think about it, to pay capital gains tax means you have made a Capital Gain.

    Investors should buy low and sell high while traders buy rising and sell falling. But really, most of us worry more about what we lose than what we gain. And we have too much needless trading costs.



    Johny.
     
  5. wdongli

    wdongli Well-Known Member

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    Posts:
    1,292
    Location:
    Perth
    Hi Johny, most of us hate to pay capital gain since most of us never get the capital gain. The things are worse in the sharemarket that Tax Office even don't allow anyone to declare capital loss against his regularly salaries and other income which are not from sharemarket.

    Sharemarket is a place we could touch the real money too easy. It needs more mental power to get the easy chips in the market into the hard earned cash. Seriously saying any action could make the money and destroy the money. We don't know we could change the winning probability in the stockmarket and turn it different from the Casino.

    We need to resilient to the risks and could identify what is rewarded one or no-rewarded one. We need to buy low and sell high with great understanding of the context and necessary conditions for the low in the time we are happy to hold and set up the plan to be sure this low is true to future price and turn our portfolio with the lowest cost in the market from our buying to our selling.

    We need to integrate all of resource, knowledge, and tools like charts and fundamental analysis into one sword to hit the weakest points of the Giant, Mr. Market and we should be confident that if we hit a wrong place, we don't drop into the trap or have to cut of the traps with unacceptable loss.

    We need to act as a wise Generals to put all into the sight and judge where we should put the force to get the breakthrough points and when it is the best time.

    We must be millionaire first and then we could choose what we prefer to get from the market which would give us the millions of dollars and we would dance on tap to pay our capital gain.