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Write an article about how a defined advantage strategy can be a good way to invest but you will want to know the disadvantages before deciding on this type of investment. If you have a long time horizon and are willing to tolerate volatility, then this may be the strategy for you.

Disadvantages of a defined advantage strategy include higher risk, as well as commissions and trading costs, which can eat into your returns—especially if your trades are commission-based. You also need to take a look at the tax implications. As with any investment, the tax laws may have changed by the time you cash out.

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