For me, I definitely understand our great taxes on income than taxes on items purchased with taxed income and special taxes added for items that was already suppose to be paid for from our original taxes.Now, It really depends on the stock/company and the state the person is living in.
For California were I’m in for now, Well just saying California says it all.
I don’t know about other people, But I flip a stock because of the amount of
profit that can be made and the amount that can be loss if you don’t sell it before it takes a you know what.
Of course if the company really have future potential for growth, I would not sell my longs or shorts.
Here is an example of why I flip 2 of my stocks last week.
I put in 13k and flipped it for 37k in 2 weeks. Now if I would of held onto it, I would have 23k and it looks like it will take a bigger dive due to filings and business operations Issues, but it does have potential to go up in the future which I still can buy in at a lower price even calculating in the combined short term federal and state capital gains taxes of about 45-50%.
My other one I put in 5k and it was at 9k in 2 days it started to go down really quick and I did not hesitate to cut my losses and got back 3.5k which would have dropped to 1.5 now if I did not sell and take the lesser loss it would be a -3.5 instead of just -1.5k.
This loss would at least cover some gains.
I think we all know that the OTC market is pretty scary and rewarding at the same time because you can be up 5x today or down 50% the same day.
I am only holding onto 1 last long stock for over 2 years and never sold one share, you can guest which one.
I am just stating my own opinion and how I trade.
Everyone is different and will buy and sell the way they buy and sell.
Everyone should consult a qualified CPA to understand
His or her own the tax consequences.
Hope to see plenty of new Phillionaires in the coming weeks.
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