PE> I want to do 2.5->3 trades, but if I just do that normally,
PE> I will have to pay 50% tax right now, which is a huge whack,
PE> which I would rather delay until I am living on the bread line.

PE> I have thought of a way to "package" capital gain, the idea
PE> being (ideally) that I want to have one $5000 parcel of shares
PE> worth $200,000, which only ties up $5000 cash, rather than needing
PE> $1,000,000 worth of shares with 20% capital increase spread over the
PE> lot (remember the goal is to get $200,000 worth of capital gain).

Dont you think that if it was that easy, some operation like Personal
Investment would have published an article on how to do that ?

PE> One way to do this is, as I said, get 10 risky stocks that
PE> had 90% chance of losing the lot, 10% chance of going to
PE> 10 times their value. I sell the losses, hold the gain.

Easy to say, a tad harder to achieve tho.

PE> Another way I have thought of goes like this.  I buy $5000
PE> worth of PRM at 4c.  The price drops to 2c.  I buy some more.
PE> The price goes up to 2.5c.  At this point I would normally be
PE> quite happy to sell the second lot at 2.5c, to make a 25% profit.
PE> However, what I do is sell the 4c one, to make a loss of 37.5%.
PE> This allows me to do 3* 2.5->3 trades on some other stocks.

Corse, all thats really done is to recover from the 4->2 obscenity.

PE> If the price should return to the 4c that I bought it at,
PE> I would hold onto it, the idea being that it goes to 5c, and
PE> I've packaged 100% capital gain, which I hold until retirement.

You've mangled that too, PRECISELY the same
argument applys to those 2.5->3 trades too.

PE> As you can see, it is a way of packaging the inevitable large
PE> increases, whilst playing off the inevitable large decreases
PE> against "normal trading", where "normal trading"
is playing on
PE> the short term 2.5->3 (e.g.) swings on daily/weekly trading.

Nope, fraid not.
@EOT:

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