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993kgt

building an airplane whee
Nov 7, 2001
16,958
Destin, FL
That’s not really responsive.

your theory is correct, but the practice is flawed in my experience, sure you *may* end up net positive at the end of the year with all those short term activities, i.e, "a gain is a gain", the problem is, you have to still have that money at year end, to pay the taxes on it

now, let's say you've generated a gain, and you set that money to the side for taxes- great, that's dead money now, it's not doing anything for you, as you do this over the year, you accumulate a stash of dead money that you owe to Uncle Sam- it's a lot of work, and then you say goodbye to the money

let's look at a more likely scenario, you've generated gains, you figure it out at the end of the year, and now you've gotta scramble to find the tax cash to cover- lame, I hate this

or the even more likely scenario, you do a bunch of short term trades and you end up breaking even, after taxes- all this energy expended- and for what? a larger tax bill?

and then EVEN more likely scenario- you do a bunch of short term trades and you end up with a loss- great, how big of one? hopefully not too large because the threshold for what is deductible is tiny compared to my trading

So why do it at all? So much more peace of mind to just buy regularly into good solid companies, and let time do the rest- and if you DO want to pay taxes, do something predicable, like NUSI, and be sure to keep track of what you'll owe at year end

me? I don't have the time for that, and I don't want to pay Uncle Sam a dime more than I should

I also won't play slots in a casino, I'd rather do blackjack or something where I feel like skill and discipline are greater factors than pure luck and timing
 

taqman15

Well-Known Member
May 2, 2002
47,402
san francisco
your theory is correct, but the practice is flawed in my experience, sure you *may* end up net positive at the end of the year with all those short term activities, i.e, "a gain is a gain", the problem is, you have to still have that money at year end, to pay the taxes on it

now, let's say you've generated a gain, and you set that money to the side for taxes- great, that's dead money now, it's not doing anything for you, as you do this over the year, you accumulate a stash of dead money that you owe to Uncle Sam- it's a lot of work, and then you say goodbye to the money

let's look at a more likely scenario, you've generated gains, you figure it out at the end of the year, and now you've gotta scramble to find the tax cash to cover- lame, I hate this

or the even more likely scenario, you do a bunch of short term trades and you end up breaking even, after taxes- all this energy expended- and for what? a larger tax bill?

and then EVEN more likely scenario- you do a bunch of short term trades and you end up with a loss- great, how big of one? hopefully not too large because the threshold for what is deductible is tiny compared to my trading

So why do it at all? So much more peace of mind to just buy regularly into good solid companies, and let time do the rest- and if you DO want to pay taxes, do something predicable, like NUSI, and be sure to keep track of what you'll owe at year end

me? I don't have the time for that, and I don't want to pay Uncle Sam a dime more than I should

I also won't play slots in a casino, I'd rather do blackjack or something where I feel like skill and discipline are greater factors than pure luck and timing

lil-yachty-drake.gif
 

obscure/renegade

Don't mind me.
OT Supporter
Oct 5, 2004
14,093
Georgia
your theory is correct, but the practice is flawed in my experience, sure you *may* end up net positive at the end of the year with all those short term activities, i.e, "a gain is a gain", the problem is, you have to still have that money at year end, to pay the taxes on it

now, let's say you've generated a gain, and you set that money to the side for taxes- great, that's dead money now, it's not doing anything for you, as you do this over the year, you accumulate a stash of dead money that you owe to Uncle Sam- it's a lot of work, and then you say goodbye to the money

I have a small rebuttal to your overall assertions; bear in mind that I agree with you on short-term trades being fraught with peril if you are bad at it/bad at setting aside profit.

Taxes are gonna be there in one way or another in a given year, you always have to accommodate for them. It's not a big deal to set aside for those, IMO, especially once you are past a certain point and maintain discipline.

That 30k gain you have today is sweet, but as of this moment it's just a paper balance. That's unrealized gains that could be gone tomorrow, or worse. With Amazon, which I know is big for you, will grow and be worth more and more, but when you do access it... you'll pay taxes on it, just like I do now. I don't like it either, and yet the fact is that the bill will come due, one way or another. That's why I'm pivoting across the board. I have to pay taxes to access the value one day, I might as well make these fuckos pay me in the meantime. Keeps me out of W2 Land at the same time.
 
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AndyP

OT Supporter
Jun 17, 2004
17,331
I have a small rebuttal to your overall assertions; bear in mind that I agree with you on short-term trades being fraught with peril if you are bad at it/bad at setting aside profit.

Taxes are gonna be there in one way or another in a given year, you always have to accommodate for them. It's not a big deal to set aside for those, IMO, especially once you are past a certain point and maintain discipline.

That 30k gain you have today is sweet, but as of this moment it's just a paper balance. That's unrealized gains that could be gone tomorrow, or worse. With Amazon, which I know is big for you, will grow and be worth more and more, but when you do access it... you'll pay taxes on it, just like I do now. I don't like it either, and yet the fact is that the bill will come due, one way or another. That's why I'm pivoting across the board. I have to pay taxes to access the value one day, I might as well make these fuckos pay me in the meantime. Keeps me out of W2 Land at the same time.
Different strokes for different folks. There’s no right or wrong here.
 
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SkiMax

Well-Known Member
Dec 11, 2004
34,391
Chicago
I have a small rebuttal to your overall assertions; bear in mind that I agree with you on short-term trades being fraught with peril if you are bad at it/bad at setting aside profit.

Taxes are gonna be there in one way or another in a given year, you always have to accommodate for them. It's not a big deal to set aside for those, IMO, especially once you are past a certain point and maintain discipline.

That 30k gain you have today is sweet, but as of this moment it's just a paper balance. That's unrealized gains that could be gone tomorrow, or worse. With Amazon, which I know is big for you, will grow and be worth more and more, but when you do access it... you'll pay taxes on it, just like I do now. I don't like it either, and yet the fact is that the bill will come due, one way or another. That's why I'm pivoting across the board. I have to pay taxes to access the value one day, I might as well make these fuckos pay me in the meantime. Keeps me out of W2 Land at the same time.
Just keep the shares until you die and then let the basis reset for your kids :cool:
 
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993kgt

building an airplane whee
Nov 7, 2001
16,958
Destin, FL
I have a small rebuttal to your overall assertions; bear in mind that I agree with you on short-term trades being fraught with peril if you are bad at it/bad at setting aside profit.

Taxes are gonna be there in one way or another in a given year, you always have to accommodate for them. It's not a big deal to set aside for those, IMO, especially once you are past a certain point and maintain discipline.

That 30k gain you have today is sweet, but as of this moment it's just a paper balance. That's unrealized gains that could be gone tomorrow, or worse. With Amazon, which I know is big for you, will grow and be worth more and more, but when you do access it... you'll pay taxes on it, just like I do now. I don't like it either, and yet the fact is that the bill will come due, one way or another. That's why I'm pivoting across the board. I have to pay taxes to access the value one day, I might as well make these fuckos pay me in the meantime. Keeps me out of W2 Land at the same time.

40+% this year vs 20% down the road

No choice for me to make here
 

Disguy

Batman > Moon Knight
OT Supporter
Oct 26, 2004
3,252
Disguy's Big Brain play of the AM open and closed for profit.

Decided to start today by rolling out my 7 AMZN 125 Covered call. Using science, math, the powers of the universe and God himself. I was able to make the biggest big brain play ever.

Actions:
Create a Calendar: Buy Order 7 AMZN 125 7/29 and sell 7 AMZN 125 8/5.
Play around with strikes and dates to get a net .77 credit.
Looks good.
Hit submit. 9:38AM
Get filled
Still have the -7 AMZN 125. WTF?
Look at account actually Bought 7 AMZN 126 7/29 and sold 7 AMZN 127 8/12 with the .77 credit per batch.
Fuck.
The calendar is now not very good or helpful. This is going to a loser to close. What a waste of time and money.
Add the 7 calendars to close for .30
Get filled. 9:42 AM

So if you are every wondering how the big whales of the stock market make their money. This IS IT! Never review your trades before you hit submit and you to can make .47 per contract in 4 minutes.

After all that I redid my actual calendar and went from 125 C 7/29 to 128 C 9/12 for .30 per contract.

In summary never do anything I do or say. LOL.
 

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