Falstaff
Ahn'Qiraj Raider
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Investing General Discussion
- Thread starter Furious
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Have you always wanted to be an FoH Aristocrat but didn't want the hassle of all of the press events? Well Guest, want no longer!
Go here and buy your Aristocrat For a Day item for the low price of 10 Latinum!Enjoy the rarified air of high Status for a day, but try not to get hooked!
Asshat Foler
Kenya jusbeh kew?
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I keep averaging down on things like NVDA and TSLA because I’m a long term investor etc etc and can’t time the market… But man todays premarket looks brutal.
Blazin
how do I know when to maybe take a little break from averaging down so that I stop catching the knife, as a long term investor…
Blazin
how do I know when to maybe take a little break from averaging down so that I stop catching the knife, as a long term investor…
Blazin
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For Long term stuff you can't just buy every 1-3% dip , Maybe 5-10% increments or more depending on how much cash you are looking to work.I keep averaging down on things like NVDA and TSLA because I’m a long term investor etc etc and can’t time the market… But man todays premarket looks brutal.
We are going to find out this week if NVDA can hold 100, this morning it's not looking good.
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Blazin
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My day got worse...
I'm going to get hit with a 90 day restriction now
I broke Day trading rules about spreads and was using SPX so numbers grow quick. Spread margin requirements change if you exit the spread not as a whole. I already know this, I'm always sure to exit the short leg first so I don't have a naked position. This is in an IRA so no lvl 4 option trading, stops at lvl 3 and limited margin rules to boot. The caveat I didn't know was that because I'm day trading the spread it changes the calculation and just covering the short leg first is not sufficient.
Because it's an IRA I can't just transfer $248k to meet the call. Doh, so that account will be restricted to cash only trading for 90 days.
For the short bus people, this has nothing to do with borrowing on margin, it has to do with intraday buying power calculations.
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Sanrith Descartes
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That's one of those fuck you moments. Its not bad enough the market is tanking, we are gonna piss on you a little more and restrict you to cash trading because... rules. That sucks.View attachment 580333
My day got worse...
I'm going to get hit with a 90 day restriction now
I broke Day trading rules about spreads and was using SPX so numbers grow quick. Spread margin requirements change if you exit the spread not as a whole. I already know this, I'm always sure to exit the short leg first so I don't have a naked position. This is in an IRA so no lvl 4 option trading, stops at lvl 3 and limited margin rules to boot. The caveat I didn't know was that because I'm day trading the spread it changes the calculation and just covering the short leg first is not sufficient.
Because it's an IRA I can't just transfer $248k to meet the call. Doh, so that account will be restricted to cash only trading for 90 days.
For the short bus people, this has nothing to do with borrowing on margin, it has to do with intraday buying power calculations.
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Sanrith Descartes
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I had a GTC order on AMZN fill at the long term support of $185. I put it in a few weeks ago and sort of forgot about it thinking it wasn't ever going to fill. Gogo tariffs. On the bright side my AMZN hold is now pretty much a full position.
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I was thinking about picking up some more AMZN. So many things looking attractive at these prices though.
What's everyone else picking up on the weakness? Already snagged some NVDA.
What's everyone else picking up on the weakness? Already snagged some NVDA.
Asshat Foler
Kenya jusbeh kew?
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Khane
Got something right about marriage
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Trying to get a bit ahead of the game here for next year's taxes. My PLTR shares were sold for a significant realized gain in January, that money has since been reinvested in VFIAX. Based on the current economic climate and looming economic policy there is a good chance the market as a whole, and my VFIAX shares will be down by year end, enter loss-harvesting.
I've been almost entirely passive with my investments for as long as I've been investing and while I understand the concept there are rules I want to be sure I'm clear on now rather than trying to wait until the 11th hour to figure it all out. The biggest one being the wash-sale rule, preventing the repurchase of substantially identical securities within 30 days. Is there any nuance to that I need to be aware of or is it simply a matter of selling at a loss then waiting at least 31 days before repurchasing?
I've been almost entirely passive with my investments for as long as I've been investing and while I understand the concept there are rules I want to be sure I'm clear on now rather than trying to wait until the 11th hour to figure it all out. The biggest one being the wash-sale rule, preventing the repurchase of substantially identical securities within 30 days. Is there any nuance to that I need to be aware of or is it simply a matter of selling at a loss then waiting at least 31 days before repurchasing?
Caveat that I am not a cpa so this is only how I follow this rule personally. The major nuance I’ve learned is seemingly that substantially identical is basically interpreted almost as exactly identical like selling spy and buying voo or even selling qqq and buying qqqm doesn’t trigger the wash sale rule.
Sanrith Descartes
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So its really a math equation. Calculate your tax gain on the PLTR. That's your baseline. Selling at a loss on VFIAX will offset that gain though keep in mind that the gain is a long term capital gain will the loss will be short term since you haven't held it a year. Assuming your plan is to go back in to VFIAX after the wash period, the thing you look at is the risk of opportunity cost loss if VFAIX goes up after your sale during the wash period. Example using fake numbers:
You sell PLTR for a 500k long term gain
Assuming a 15% cap gain with no other variables the tax is $75k
You put it in VFAIX.
You sell VFAIX for $300k realizing a 200k loss.
After the offset, your tax is now $45k so the tax loss harvest saved you $30k
Here is where the opportunity cost issue may or may not bite you.
During the wash sale period VFAIX goes up 10% and you rebuy back in. Lets call it $50k you lost on that wash period. So you ate a loss and then bought back in at another loss.
This is versus just holding VFAIX and paying the 75k tax bill
Now of course this is hypothetical and VFAIX could also keep plunging and you saved your self a paper loss by loss harvesting.
I guess my point is loss harvesting has a lot of moving parts to think through before you do it.
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Sanrith Descartes
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I have seen it interpreted differently. It really depends on the brokerage. I have seem them wash sale Doge and BTC because its all "crypto". There isnt a hard/fast rule I have seen implemented across brokerages.
Blazin
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What? Where did you see this? I have never seen a wash sale other than the EXACT ticker
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Sanrith Descartes
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Blazin
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Not sure I agree with the accountant there is no calculation , you realize the loss you immediately buy something that puts you back in the market and done is done. There are a million and one ways to get market exposure and they are not going to trigger a wash sale rule. We can argue over what would stand up to an audit, and that is a larger gray area but to pay this tax over that fear seems crazy to me. You could simply switch from S&P to total market or something, so many ways to do it don't see the point of listing them literally hundreds if not thousands.
