Forum Archive Index - July 2000

["graham perkins" <f_uker@hotmail.com>]

Ritchie,

Wise words spoken there,  I think most people can take something from your 
experience. When I look at the lowly AQL share and huge percent loss that I 
have incurred it hurts but then I think of you, I have got of lightly ( not 
meaning to rub it in :)

Hope your future trades are profitable and don't put all your eggs in the 
same basket.

Cheers

>From: "ritchie marr" <ritchie_marr@hotmail.com>
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: [sharechat] Trading tip for unlucky  punters
>Date: Fri, 30 Jun 2000 06:43:13 PDT
>
>I have an accountant who tells me everything I need to know....if I ask the
>right questions.
>
>And it is all my fault.
>
>But here is a lesson for anyone who feels like learning from someone else's
>"school of hard knocks class time".
>
>I decided about a year and a half ago, that I would have a go at changing
>from paper to real trades. I had been successfully investing in value 
>stocks
>for about 7 years prior, and felt that I was competent at my "practise"
>trades, and so I began.
>At first, I was an ace. Even my broker, who openly disagreed with nearly
>every decision I made, would often comment at my need to be Bottled, or
>touched for good luck. I couldn't do a  thing wrong.
>
>So then I would add in the profit made, and the deals would get bigger.
>$10,000 began to feel the same as $1000. $20,000 trades began to be routine
>and anything less than $10000 was becoming ineffectual.
>
>Then I ventured into options, small at first. But small was now $5000.
>I lost it all. Traded FEG options for 6 weeks, and managed to turn that $5g
>into $400. I shrugged it off. I then began playing AQLOA and made it back 
>in
>one week.
>
>But I was playing with bigger and bigger slices of my only pie.
>Parents, friends, family all wanted a piece of the action, on a loan/ 
>profit
>share basis of course. Hindsight shows up my over-confidence like the car
>headlight shows up the opossumon the road in front of the wheel.
>Darn, too late! Now my one pie is three empty pie trays.
>Yes I did diversify, etc, but as good stocks matured, I sunk more into AQL
>believing it to be a sure thing, short term easy percentage gain; and in
>another universe another time it probably would have made me a millionaire.
>
>Anyway, getting to the interesting part.....
>
>If you are a registered trader, then losses are tax deductible against
>future gains, or other taxable income.
>
>Or so I understood.
>
>So here I was quietly feeling a little better that the disastrous loses on
>AQL ( in excess of $100,000) could be written off and become tax credits
>against my current and future earnings.
>
>Well, didn't I have a really bad day when my accountant rings up and says
>that my tax bill will be significantly higher this year as a result of all
>the trading profits I had made.
>
>
>?????????????????????????????( then lots of swear words!!!!!!!!!!!!!)
>
>Due to the fact that I hadn't sold my AQL shares on the 31st of March, none
>of the losses could be realised in this financial year. Absolutely common
>sense to everyone who already knows!
>
>Bottom line : If you are carrying any losses as at the 31st of March of any
>year on any stock you are trading, SELL IT! Even if you want to keep it. 
>Buy
>it back one day later, and you can use the tax losses against any profits
>made. If you have profitable stocks as at the 31st of March and are ready 
>to
>sell DON'T! Sell on the 1st of April, and the profits won't be realised
>until July 7th, the following year. This will give you plenty of time to 
>use
>that profit over and over again to more than cover the cost of the tax by
>that time.
>
>Note also that all manner of things that you are probably buying anyway, 
>are
>also tax deductible.....a portion of your electricity, 50% of your main
>phone, and 100% of any second line. All computer consumables, stationery, a
>percentage of your cars total expenses,if you keep a log book for 3 months.
>And what about that luncheon ( 50% deductible ) to discuss finance with a
>friend who is interested in possibly investing through you at a percentage
>share of course.
>
>And the list goes on and on.
>
>Having said all that, I am still inspired by this quote by someone..."Oh to
>be able to write a $1,000,000.00 tax cheque to the IRD.
>
>
>Ritchie
>
>________________________________________________________________________
>Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com
>
>
>----------------------------------------------------------------------------
>http://www.sharechat.co.nz/          New Zealand's home for market 
>investors
>To remove yourself from this list, please use the form at
>http://www.sharechat.co.nz/forum.shtml.

________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.