Current Events > On the stock market, can't you just dump stocks every time you're $300 up?

(+) Yeah! (+)

What's the downside of buying 100 stocks from 6 companies, then selling when you're $300 up, and buying a different stock?

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-l___________l- posted...

You have to pay tax each time you sell, for one thing

But only on the gains, right? Which is no different from taxable income.

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Lolol

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do it and report back in 3 months

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Anyone else?

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Orlando_Jordan posted...

Which is no different from taxable income

incorrect. (the percentage you have to pay is different)

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Has TC unlocked the secret of the stock market!?

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Also have fun just successfully getting 200% profits over and over again. Man, how could nobody else ever think of that.

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Drpooplol posted...

incorrect. (the percentage you have to pay is different)

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

Short-term capital gains are taxed as ordinary income according to federal income tax brackets.

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Drpooplol posted...

Also have fun just successfully getting 200% profits over and over again. Man, how could nobody else ever think of that.

I'm talking about putting like 7K into each stock. That isn't 200% profits.

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Stick with crypto. Better results.

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Orlando_Jordan posted...

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

Short-term capital gains are taxed as ordinary income according to federal income tax brackets.

Ah I misread and thought you were talking about short-term vs long-term capital gains.
Orlando_Jordan posted...

I'm talking about putting like 7K into each stock. That isn't 200% profits.

Again, my bad I thought in your OP you said buying $100 worth of stocks.

I should have had my coffee! I feel embarrassed as a CPA

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Drpooplol posted...

Also have fun just successfully getting 200% profits over and over again. Man, how could nobody else ever think of that.

lmao

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You're basically describing day traders.
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well nothing is stopping you from selling at a profit, is it going to outweigh those you sell at a loss though?

Buy high and sell low

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HODL_Austin_Era posted...

Stick with crypto. Better results.

Lol.

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its indeed much easier to profit in crypto during bullmarkets for a beginner

Bull? We are talking about money not animals brah.

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The issue is when you end up like $500 down when youre trying for $300 up, and it stays down there and never goes back up.

You can try playing with razor thin stop losses to help minimize that, but thats likely just going to result in you constantly selling at small, consistent losses if youre doing that across many stocks.

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CE_gonna_CE posted...

The issue is when you end up like $500 down when youre trying for $300 up, and it stays down there and never goes back up.

Does this really happen with reputable companies that have been around 10+ years?

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I remember when I thought along these lines five years ago. I saw a highly volatile natural gas ETN and thought "it keeps jumping up and down. What if I simply bought on a dip and sell on a jump? That'd be a nice ~5% profit!" Lucky me, I bought on a dip... then it dipped some more... and more... and more... and then a reverse split which dropped it a ton. Sure the whole time there were some jumps, but it didn't get up to my original purchase price. I caught a lucky break when it jumped up massively in late 2018. All told, it took about a year and a half to get my money back, though I made a decent profit on it (less than if I put it into safer stocks) and only through sheer luck. The ticker is UGAZ, btw, which has since been delisted.

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Orlando_Jordan posted...

Does this really happen with reputable companies that have been around 10+ years?

Yes. Think about the 90s tech bubble. Microsoft didn't beat its all-time high from 1999 until 2016.

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now who's afraid to throw the p-switch up?