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Here in BigTrends rarely going into politics, unless we are examining the possible reactions to political events in terms of opportunities trade. We prefer to find the benefits to our customers through mapping and the feeling then to worry about what politicians are doing.

However, a New York congressman has proposed a bill that is detrimental to active traders / investors such as ourselves, our readers Newsletter, our Premium subscribers Consultative Coaching and our customers. Enough so that we are going through a website link to their pages that will allow sign a petition against the adoption of the proposal and automatically send an email to their senators and congressmen.

The Bill HR 1068, essentially imposing a transaction tax 0.25% in the sale and purchase of financial instruments such as stocks, options and futures. While this may seem minimal, which could amount to a round trip charge $ 50 a share purchase 100 of AAPL for example. And in every deal you make.

If you go to website, you will find more information on the bill and how to sign the petition against its passage and send emails or letters to Congress.

target = "_blank" href = "http://www.rallycongress.com:80/no2tradertax/1536/tell-congres-to-block-trader-tax/"> http://www.rallycongress.com:80/ no2tradertax/1536/tell-congres-to-block-trader-tax /

Here are some opinions on this proposal and Price Headley Team of BigTrends of portfolio managers:

Price Headley, President:

I see the ability to trade and invest like a real symbol of capitalism and freedom that has helped increase the greatness of America in the last 2 centuries. As if the shift to socialism in our government was not already offensive enough to our ancestors and all Americans who work hard, the idea of a tax on trading decisions would be one of the most stupid Washington never did (yes, at the height of the ridiculous ban on short sales again in September – see how well it worked too). A tax on trade actvity all severely limit the frequency of business decisions and thus the liquidity of markets would be seriously decreased. I hope you will join us all in BigTrends click on the link and sign the petition to vote for the protection of their choice to trade as little or as much as you want, without additional government taxes.
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Bob Lang, Portfolio Manager:

This impact is considered quite negative and with businesses. The currency and futures markets, which have been a source of liquidity and balance or suffer the consequences, the consequences will be tremendous. reactionary response of the Government of greed past not struck at the heart of the problems in Wallstreet. Once again, big government is that to intimidate some smaller players, limiting market access to the rich.

Andrew Hart, Portfolio Manager:

This is the method of government to find a scapegoat for the financial turmoil and can be counterproductive. In my opinion, the imposition of all operations (gains and losses) will affect more liquidity. By raising the cost of trading many traders, who are small business owners can impede trade or reduce the quotas of negotiated contracts. Reduced liquidity may have broad implications, as seen in the credit markets in late 2008.

Moby Waller, Portfolio Manager:

Although Main Street is certainly not anger against Wall Street, because the world Madoffs slag and other reasons, an additional tax assets to investors is not the answer. A bill like this actually decrease the volume of trade and inhibit potential market recovery in a new bull market that rises all boats (and 401k, etc.). It will not help the troubled financial sector, which is at the heart of much of our mess fiscal year. In fact would also support a reduction (or temporary removal) of tax on capital gains on securities transactions (both long and short term) as a means to encourage market by increasing buying activity.

Scott Downing, Portfolio Manager:

As we have seen in the past, taxes create a change in supply and demand. If this tax is imposed on merchants, banks and brokers will have to reduce their margins to offset the tax as operators try to keep in the game. We know that banks and brokers are in far-right lines, so this is not a good solution to the problem. As the government continues to lend money to companies and take stakes in those companies, makes most traders want to stay away from the markets because they can not predict the next action from the government. The tax will ultimately lead us further from the current free market that capital of the units in our country's economy, the elongation of the current recession.

Again, we urge you to go to the website linked above and sign the petition urging Congress not to approve this proposal in the law.

Trade Well,

Price Headley

About the Author:

Price Headley is the founder of BigTrends.com, which provides investors with real-time stock and options strategies and investment education. Price has appeared on CNBC, Fox News, Bloomberg Television and a variety of print and online financial news outlets.

Article Source: ArticlesBase.com – Tell Congress No On The Trader Tax

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