Or discipline?
Yes, no science on the 10%. Can be whatever someone prefers. But it’s been a good level to get me to stop and think about the position.
That all depends on the volatility of that stock. You can be whipsawed out on stocks at a 10% stop loss
Just wanted to make sure I described this accurately. My sell order/stop loss is for a 10% decrease of the original price at purchase. So, if I buy a $100 stock, I set a sell order for if it hits $90. I don't sell the stock with any 10% decline.
Very reasonable. I have trimmed some of my high-flying growth/tech funds and ETFs. Put the money back into my value holdings to maintain allocation ranges. Last week, I sold a little FDGRX so I can beef up DODGX. Trying to stay disciplined.
It's not NVDA.
Ended up taking about a 42% loss on IDRV today. I finally cut ties with it. I should’ve a long time ago tbh. It’s one of my only losers thankfully. Ended up putting the amount from the sale into Nvidia. Not sure if it’s smart or not but figured I’d make more on that than what it was in previously. Plus Tom Lee has it in his Granny Shots. Can’t go wrong with Mr Lees picks
If you sell a stock at 10% loss and then buy it back before 30 days, you would generate a wash sale and couldn’t use the original 10% loss to offset any gains until you sold off your new position.
Case in point would be DELL. Selling it after earnings would have resulted in missing out on the current run up. I expect it to go back up to $175-180 soon
As I mentioned before, the 10% is based on my original purchase price. Not selling due to any 10% drop.
True, by why should I care about that? I used TurboTax and it imports all Fidelity tax forms.
What does TurboTax have to do with it? Wash sale hurts your overall tax situation.
Just saying the forms are automated, so it's not like I need to deal with it directly on my taxes. As for my overall tax situation, these positions are relatively small. If I need to make major moves (say with our brokerage ETFs), these smaller moves won't make much of a difference.
Got it. These trades must only be a few bucks. If I did what you did, my CPA would tell me to quit my partnership.
No, not necessarily. Why would I care about a loss if I believe there is something better to do with the money? I would rather dump and move on instead of hold on to a loser in attempts to prove myself right.
Losses are important to offset gains. I use them to reduce tax burden in the short and long term.
My personal account is about $150k. Nothing crazy, but legit money. Half of it is in FS Insights stock list and QLD (which I'm up 2x). This rest is for stocks and other fun plays. Started this account with only $20k, so I'm doing well!
Understand and agree. I had a huge gain in TQQQ last year and I used the October 2023 dip to swap some newer ETF positions that were underwater. I was able to offset that entire gain! That saved us a lot of money.
Good move. That’s why it is important to use capital loss and gains appropriately. If the account is like 10% of your entire portfolio then wash sales likely won’t matter much. Otherwise, you should use losses and gains appropriately. I have spreadsheets that I constantly update to keep track of my gains and losses across my entire portfolio.
The political winds regarding crypto have changed. DC is figuring out that 50 million Americans own crypto and our voice is growing.
GILD is a great company that recently dipped due to its transition in focus - diversifying away from HCV and one big clinical fail several months ago. Regardless, it still has a robust and promising pipeline. Today's data announcement is big. The preliminary data was so positive, they stopped the trial to give the new product to all participants (which is inline with ethical and moral guidelines).
