Here is a little bit of info for tax purposes, incase anyone sells stock in a cash account.

http://www.investopedia.com/terms/c/capital_gains_tax.asp#axzz1dkHlFuGa

In RSP and TFSA, capital gains do not apply, and you are not dinged for capital gains tax. You can buy and sell in these accounts as many times you like in a year, no losses or gains will be realized. With the TFSA, every penny is tax free. With the RSP accounts, you are taxed at your marginal tax rate only when you withdraw actual funds from that account.

http://blog.taxresource.ca/rrsps-versus-non-registered-accounts/

Say for instance, you bought 100,000 SLI shares when they were .50 in a cash account. Lets say you sold the 100,000 shares when we hit $2.80. Your capital gains payable would be as such,$280,000- $50,000= $230,000x approx 26% for westerners of Canada, and 37% for us easterners. So, tax due for westerners on that amount= $59,800;

Tax due for easterners= $85,100

Say now, SLI has dropped to $2.30, you decide to buy back in. If you are a westerner, you have $230,000 from your sale, so you can buy back in, but still the same amount of shares of only 100,000, because your profit was given away to taxes. You would have to ask yourself, was this wise, what did I gain?

You gained nothing on that trade, the easterner lost shares because his tax was higher, and you probably helped drop the shareprice for the rest of your shares you didn,t sell, adding a little more agony. You may have also risked being left out if the stock was halted and the sp appreciated handsomely in the time you were out.

Where you lose approx 25% to the government everytime you execute a trade like that on the stock, you could end up losing more shares in the long run, and have less shares when/if a big payday comes. Be careful of what you do in a cash account when trading.

If you bought SLI at $2.80, sold at $2.30, and realized a capital loss to apply against any capital gains you have. You cannot buy the stock back within 30 days to realize this loss. If you buy the stock back 10 days later, your capital loss will be not allowed, those are the rules. So say you bought the stock back 10 days later at $2.50, you have a loss that you cannot count, plus now you have less shares than you initially had, because they now cost more.

Now the flip side, if you were lucky enough to sell the 100,000 SLI shares, buy another stock , and that went up 25%, that gives you a capital gain of $25,000. But subtract your taxes when you sell of $6250, then you are left with $18750 profit, or 18.7% gain. Do that same thing a few more times, and you could be up to a 56% gain. But, the chances of always making perfect trades are very slim, so you will have to throw a loss or two in there, which will slow you down and most likely take you 6 months to realize that much of a gain. So, you are out of SLI for 6 months, which it may have appreciated 30%, so subtract that from your 56% gain, and you realize you came ahead 26%. But, keep in mind the potential, and if the sp appreciated multiple times, you could have missed out on something big and your 6 months of trading were a waste of time.

So, you can see in the scenarios above, you need the stock to move by more than 25% to the downside on the dip, before this strategy is profittable in a cash account. Thats quite a bit to ask for on a high potential stock, be careful.

These are just hypothetical situations I brought up because of year end for taxes drawing near and to show people there may be more to selling, than they thought. Nobody wants to give anymore away to the tax man than they have to.

IMO