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I love nicknames. I think they're great so that you can have a short version of your name or an affectionate thing to call someone. I feel rather strongly about giving my kids names that can have nicknames, and that's mostly because my own name doesn't have nicknames and I've always been disappointed by that.

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I'd use:
Elizabeth - Nell, Effie, Lizzie
Catherine/Katherine - Cate/Kitty
Alexandra - Alex
Annabelle - Nan
Margaret - Maggie, Mae, Mamie, Margo

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Ella - Elizabeth, Eleanor
Bella - Annabel, Isabel
Lily - Elizabeth
Emmy - Emmeline
Allie - Allison, Alexandra
Cassie - Cassandra, but I dislike it
Anna/ Annie - Annabel
Josie - Josephine
Lexi/ Lexie - Alexandra