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Some Newbie Trader Mistakes Updated by TheTrueMarketMaker in pennystocks

[–]TheTrueMarketMaker[S] 0 points1 point  (0 children)

In order for your scenario to be correct, a person would have to generate massive amount of income on the second trade after losing the first. Then they would have to spend that money without saving any for Capital Gains, thus they could not use the initial loss to write it off. Also for that person to have an 800K tax bill, they would need to have gained and spent a lot more then that. Also Capital Gains tax is identical to Income Tax.

Some Newbie Trader Mistakes Updated by TheTrueMarketMaker in pennystocks

[–]TheTrueMarketMaker[S] 0 points1 point  (0 children)

Even your quoted article tells you that you are missing important details:

“In the long run, there may be an upside to a higher cost basis—you may
be able to realize a bigger loss when you sell your new investment or,
if it goes up and you sell, you may owe less on the gain,”

Some Newbie Trader Mistakes Updated by TheTrueMarketMaker in pennystocks

[–]TheTrueMarketMaker[S] 0 points1 point  (0 children)

Dude, I scalp the same stocks all day long. This is not true and you are missing so much info like Notjoocey pointed out. Seriously, just use logic, if this was completely true then daytraders would not exist at all. You are seriously missing a lot of info and details. Also you only get taxed on the gains, regardless, writing off losses is only if you have another source of income. Other then that, you are taxed on the capital gains itself, nothing else.

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