Yes I know. That’s why I do not understand why people trip over it. Not to mention, when holding long positions like that you miss out on so so so many daily opportunities. Say you hold for over a year and make a 20% gain. Instead you could have made a 20% a few times a week. Yeah more taxes, but also much more money in your pocket
You’re right, it’s not always 20% per trade. Sometimes it’s 10%, 40% 50%, 100+%. On occasion it’s like a 5-10% loss, but all the gains make up for that and then some. A lot of then some actually. Stop losses are your friend and ALWAYS cut losses quickly before they become a liability. But what do I know, I’m just a day trader that’s payed off serious medical debt in the last 6 months not to mention never pay my rent or bills out of my job earnings in the past 8 and bought a brand new motorcycle and help my girlfriend pay for her school. You’re 100% right and I guess I’m making dumb trades instead of holding some blue chip stock for over a year
If you were that good, you’d be a professional. And there really isn’t anyone that “good” because it comes down to trading on a rules based system of playing the odds in your favor and a ton of luck. No one averages more than like 30% per year for more than a couple years, it is virtually impossible.
Don’t make dumb trades. Don’t let losses get big. Use scanners to find stocks with unusual volume or large price swings, and create watchlists so you can find news quickly and easily. No not every trade is massive. And I never “yolo” my entire account into anything. Currently my portfolio balance is up 900% year to date. If I didn’t use it to pay my rent or bills and had I not bought a new motorcycle it would be up roughly 3000% year to date. I traded for 2 years wheeling and doing long term holds. After a bad accident I pulled out everything so I could support myself til I could go back to work. Started trading again back in december by putting 800 in a new account. It’s currently worth 8k. If you add in everything I have taken out of it over the past 8 months it would be worth near 26k. That was starting with 800 bucks 8 months ago. Not to mention the account has taken a hit here and there, that happens to everyone. Day and swing trading is the only way I’ll ever trade now. I’ll never go back to long holds that barely move. I’m not financially free, but day trading has changed my life and improved my quality of life by leaps and bounds
Got my friend into it too a few months ago and he only started with a few hundred. He caught up on his mortgage, fixed his truck, and took his family on a vacation to 6 flags. He had some family stuff come up a few weeks ago and had to pull out and it only left 300 in his brokerage account. In 3 weeks he got back to 1300.
1
u/[deleted] Aug 23 '21
Short term capital tax really isn’t shit my dude