SHORTER-TERM TRADING STRATEGIES HAVE AN ADVANTAGE WHEN SHORT-TERM G...

3. Shorter-term trading strategies have

an advantage when short-term gains

Candidate discussion: The statement

ignores that over time portfolios are

and losses are taxed more heavily than

Incorrect

long-term gains and losses because the

expected to generate net positive returns,

shorter-term trader will realize short-

not losses. Even if there were short-term

term losses to shelter short-term gains

losses and a tax advantage to realizing

that would have been heavily taxed.

those losses, both short- and long-term

traders could realize the loss.