Since the more the rest of us trade the more we as a group lose to the computers, here’s one more reason to buy and hold rather than trade, unless you have a big enough edge. Although it’s politically not likely, a small federal tax, averaging a few cents a share on every purchase, could eliminate these traders and their profits, possibly saving more for investors than the extra tax, and adding cash to the US Treasury. If this cut a trading rate of about $30 trillion a year for equities by half, a 0.1 percent tax (3 cents a share on a $30 stock) would still raise about $15 billion.
