Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I agree with all of this post of course, but want to point out this part. If you sell ALL shares for more than your cost basis, then yes, congratulations.

If you are selling just SOME of them, you have to look at how your brokerage works. Mine is "first in, first out" by default, so it automatically sells the oldest shares. I think you can pick which shares if you want, but you have to set it up to do that on the sale.

Just wanted to point out that you might sell for more than your cost basis and still lose money if you are only selling a portion of your shares.

 

Definitely true. Everything I'm using operates on "first in, first out".
I was trying to keep it simple for those who couldn't understand a reason to sell and buy in lower.

 

Just to add, I guess in theory, it doesn't matter at all (same amount of shares in the end). I was just talking about taxes (gains or losses will be different on which shares went in and out).

I knew what you meant though.

 

Strictly speaking, if you *know* it's going to go down then sell, short the stock to ride it down, cover the short, and buy back in.

(I'm not recommending anyone do this...)

 

I actually "kinda" managed to do this.
When the market first suffered its "Rona loss", I lost money for a day and a half. I then sold everything, and bought short etfs. I held those for a day or 3, and managed to gain my losses back. I sold all of those and now I've partially bought back in to some of the stocks I originally had.

Point is, by buying some of the same stuff I sold in less than 30 days, I'm sure I cost myself the loss write-off by making it a wash sale.
It would be stupid of me to care, because the net result was much much greater than any benefit of that loss write-off.

I see people making stupid decisions based on tax avoidance all the time. They often go the other way too. "I can spend this ridiculous amount of money because I can write it off on my taxes." You don't deduct the amount from your taxes, you deduct it from your income, so the "write-off" is only 25% (or whatever your tax bracket is)

 

Recouping 25% of the losses makes it worth it to me if you really wanted to get rid of something anyways. I just wish the losses weren't capped at $3k per year.

 

Can't you spread a loss over multiple years if it's greater than $3k?
Hopefully you're not bumping up against that too often

 

I am carrying 4 years of losses from the late 2018 crash. Still have 2 years more to write them off. I want to take more losses now, but it may get a little confusing on taxes.

It’s an opportunity if you use it right. Everything is down so if you buy immediately it’s not really a loss.

 

I see with everything tanking, Tsla is still doing well...725 per share

 

For once, the headline and the stock trends match on CNBC!
https://www.cnbc.com/2020/04/15/the...red-the-economy-is-clearly-in-ruins-here.html

Stocks on sale today!

 

I think "shambles" has a better ring to it, but ruins is ok too. The worse the better for me. I got some dividends today, bought KO, ENB, and FRT!

 

BA is falling again.

 

I mean, I hate to be "happy" about joblessness, businesses collapsing, etc - but even still, I truly believe we're still within the frame of "good riddance, your business plan was bad". I think we're about 2-3 more weeks of that before we start losing good businesses.

But, yeah I mean stocks are on sale and I'll ride that wave back up. I'm fortunate and lucky right now, I'm still working, still employed, etc.

 

I am not making any of this personal (of course I feel bad for people going through this). However, investing needs to be emotionless

 

Like I said, it's hard to feel happy but, hey, STOCKS ARE ON SALE Y'ALL!

 

Speaking of feeling bad, there was an "article" showing millenials hoping the housing market drops or tanks so they could buy houses. While I dont want people losing houses and what not, I have been watching this as I dont wanna buy a house at market peaks just for the value to drop.

 

I am ashamed to have to call myself a millenial. I wish there was a way to opt-out of that category.

 

I went on a rant probably yesterday, I hate my generation sometimes.

First advocating for a rent strike, just straight up not paying their rent because they shouldn't have to during this.

Secondly, thinking their starter home should be a 2500+ sq ft with a huge yard in a wonderful school district and then complain that houses aren't affordable and it's all the boomers fault. Yeah, it's not what it used to be and it's definitely harder now than the boom boom gen. But, for the love of god....We bought a starter house when we were...24? Because at 24 we could afford a starter house.

 

As a millennial, I will definitely be adding another rental or two if the market tanks. Bought my first house in 2010 at 23 years old; that's about 3 years from being paid off. It's been steady rented since 2012. My current house was a shortsale and I've been fixing it up while living in it. I will absolutely be looking to add to my portfolio with this crash (if it comes).

 

I can relate to the millenials on this thread. I consider us all to be smart people (if you're here talking about investing). It's just most of the rest of them, laziest and most entitled generation of all time.