"I don't want to pay capital gains taxes."

I grimace whenever I hear this statement. I don't mean to offend anyone, but there must still be many people who let this notion get in the way of trading stocks. Not making the proper decision due to fear of remitting capital gains taxes must be one of the most ignorant notions in stock investing.

In my opinion, once one has maxed out his tax-deferred accounts, his goal should be to pay all the capital gains taxes he possibly can. Lots and lots of them. It is a shame when someone makes a trade of a lifetime and then blows it because of greed.

To be frank, I was once an idiotic firm believer of this statement, and was heavily influenced by such inquiries:
"Do you realize how much taxes you would have to pay because your gains are short-term?"
"What is the point of making money in a compressed period of time when it means you would have much less to show for it, than if the stock were held long-term?"

Such considerations merely stemmed from greed, not reason. Come on people: gains can be ephemeral. Take the gains when they appear unsustainable; don't ride things back to a loss. The only time when no taxes are due is when you sell at a loss.

Would you refuse to work on the basis that you have to pay income taxes on your paycheque?

I didn't think so.