Replies to post #230858 on Amarin Corp Plc (AMRN)

[Atom0aks]

Another extremely important rule is to never let your tax situation influence your decisions. I can tell you countless stories of people who had big gains in a stock and refused to sell due to tax reasons. It happened to me early on in my investing days. Those big gains got crushed and many people ended up in the red. Don't be greedy. I will pay taxes on my gains all day long as long as I'm making money.

Are there any resources you recommend for someone interested in investing strategies like yours? I am discovering that I am much more profitable getting out while I am ahead and so it's frustrating when the only advice I get is to 'buy and hold.'

[sts66]

Didn't mean that taxes should play a role in buy/sell decisions, was just curious about how they impact your profits - could be taking 37% of them away just for Fed taxes. Being an experienced trader with accountants worrying about taxes, I assume you're aware that for traders like you quarterly estimated taxes have to be paid on your profits. But yeah, you generally shouldn't let taxes play a huge role in sell decisions - in certain circumstances they do need to be considered, like if you have a highly variable annual income - but not taking profits solely to avoid paying taxes is just dumb - if you maintain the gains you're going to have to pay them eventually, and as you mention holding can cost you all of those gains. That said, nearly everyone on this board wants a mostly stock + CVR BO because they want to manage when to take the tax hit, like in years where they have LTCL's to offset the gains.