Down goes the Dow

^ Troll post ^

all time highs again today for the SP500

agip wrote:

all time highs again today for the SP500

Igy boldly calling it now - a 12,000 Dow. When? Between now and eternity!

Your birthday 4/1/2021.

agip wrote:

Swaglord_the_real_one_1_one_1 wrote:

Thing is, he's kinda right. How could you NOT make solid gains if you were swing trading properly in this market.

well the point is that when teenagers are able to convince their parents that swing trading is a good use of money...there is way too much money sloshing around and it will most likely all try to exit at once. At some point.

That's called a free market. And we go to great extents to keep it that way,

The trick is knowing how to read it, same as it's ever been. Just different times,

Sold a few losers for year-end tax purposes. But this was a good year for investing and I'm going to have to take a bit of a tax hit. No real complaints. At least 2020 was good for something.

Bummbull wrote:

So most people should invest the way Flagpole does it by living below your means and invest the rest continuously month after month and will definitely reach financial freedom as the market always goes up in time. Always does.

1) CORRECT!

2) Change "most" to "vast majority", and it's even more right. Those who don't need to invest the way I do are those who...have an enormous salary (I'm talking millions each year for years and years...think Major League baseball players), people who are retired and now just withdrawing money, people who are independently wealthy (through inheritance, divorce, whatever). If you have anywhere from below average income all the way up to a million dollars a year even, you would be best served my following my strategies.

3) Remember that my way DOES allow people to invest in individual stocks or anything else really. You just have to meet some criteria first...NO debt at all, a paid-for house OR enough extra money to handle rent increases the rest of your life, a million dollars minimum in the stock market, continuing to put in 15% or more into your retirement accounts if working. Have all that, THEN you can invest in individual stocks or a restaurant or whatever else.

Stanley Morgan wrote:

Ghost of Igloi wrote:

Talk about personal growth issues.

Sure. Where do you want to start?

Go, Pats!

Your lover boy has some growth issues.

?

Go Fats!

At the end of a year, are your losses separated from your gains? Or are they all lumped together for capital gains calculation? Also, is the capital loss allowance really only 3,000 for married filing joint? I have never sold for a loss, but am considering trying it this year because I have done really well in some other things.

Actually, I have never even sold anything before, even for a gain

casual lurker wrote:

At the end of a year, are your losses separated from your gains? Or are they all lumped together for capital gains calculation? Also, is the capital loss allowance really only 3,000 for married filing joint? I have never sold for a loss, but am considering trying it this year because I have done really well in some other things.

Lumped together, but short and long have different implications. Also, income level a factor for tax

, as well as ability to match gains against losses dollar for dollar. Losses in excess of $3,000 can be carried over into future tax years.

Ghost of Igloi wrote:

casual lurker wrote:

At the end of a year, are your losses separated from your gains? Or are they all lumped together for capital gains calculation? Also, is the capital loss allowance really only 3,000 for married filing joint? I have never sold for a loss, but am considering trying it this year because I have done really well in some other things.

Lumped together, but short and long have different implications. Also, income level a factor for tax

, as well as ability to match gains against losses dollar for dollar. Losses in excess of $3,000 can be carried over into future tax years.

terminology is 'tax loss harvesting' to sell your losers for tax purposes, and 'tax loss carryover' for using those losses in excess of $3 K into subsequent years tax computations.

There's all kind of minefields to discover along the way, like the rules for wash sales across cash verse tax sheltered accounts that probably most people don't fully comprehend.

That’s net loss for the calendar year though, right? So if I have a 10k loss in one stock, I could sell another today with a gain of 5k and there would be a net loss of 5k on the year, 3k of which I could apply this year against...what? Ordinary income? Or against capital gains tax on the 5k I made on the stock I sold at a profit?

Ie do I pay capital gains tax on each individual stock, or on my net realized capital gain for the year? I just started this year, so it is all short-term.

Thanks for the help.

This is my situation: I sold something for a loss this year, a bigger loss than the gain I made selling other things.

But I still have other things on which I have unrealized gains. Should I sell them today, to “write off” against the net loss that I now have for the year?

casual lurker wrote:

That’s net loss for the calendar year though, right? So if I have a 10k loss in one stock, I could sell another today with a gain of 5k and there would be a net loss of 5k on the year, 3k of which I could apply this year against...what? Ordinary income? Or against capital gains tax on the 5k I made on the stock I sold at a profit?

Ie do I pay capital gains tax on each individual stock, or on my net realized capital gain for the year? I just started this year, so it is all short-term.

Net amounts: 3k reduction of ordinary income 2020, 2k loss carryover

casual lurker wrote:

Thanks for the help.

This is my situation: I sold something for a loss this year, a bigger loss than the gain I made selling other things.

But I still have other things on which I have unrealized gains. Should I sell them today, to “write off” against the net loss that I now have for the year?

Of course depends. Based on market valuations, I would net my gains versus losses at a minimum. I would reduce my largest position(s) or mosts speculative position(s). I believe having higher cash allocation currently is a good thing. IMHO.

Thanks, that’s what I thought. Since all I have is short-term and I might very well not hold anything long-term, I may as well sell and “lock in” gains in the same amount as my current net loss. I would sell my bitcoin too, I have made something on it this year, might as well lock it in. I’m not worried about a small transactional fee here and there.

Thanks again, I have been enjoying this thread from afar, I really like all the regulars. I just set up a small trading account, in addition to my 401k. I am told not every year is like this one!

Yes thanks, I have some Apple, Microsoft, and especially Tesla that I could sell. Lol I would probably buy them back, except for maybe the Tesla.

casual lurker wrote:

Thanks, that’s what I thought. Since all I have is short-term and I might very well not hold anything long-term, I may as well sell and “lock in” gains in the same amount as my current net loss. I would sell my bitcoin too, I have made something on it this year, might as well lock it in. I’m not worried about a small transactional fee here and there.

Thanks again, I have been enjoying this thread from afar, I really like all the regulars. I just set up a small trading account, in addition to my 401k. I am told not every year is like this one!

Not sure why you wouldn't hold anything long-term. That is pretty much all I do with regular equity purchases. You sound like you are fairly young. Start buying Vanguard index funds and just forget about them. Keep buying what you can as frequently as you can along with some stocks that you like. Historically, the market has returned 10% annually (11% with dividends reinvested) and 12% for small caps. At 12% your portfolio will double every 6 years (72÷12) though nothing is guaranteed.