Am I stupid for holding on to stocks that have 100% and 199% returns if I really don't need the money?(no brag got lucky)
Also if I sold one of the stocks it would be within one year so wouldn't I have to pay a nice short term capital gain tax on that?
I'll use one of my own trades as an example. Just to simplify, I'll use round numbers and not include trading fees.
Last May I bought 1000 shares of Sprint @ 2.50/share
1000 x $2.50= $2,500 is my investment
Let's say buy May 30th it hits $7.50/share (very likely btw). Or a 200% gain.
My investment is now worth $7,500
My play is to take keep my original $2500 in Sprint because I think it could go to $12/share, and take the $5,000 gain and roll that into 2 other stocks, let's say XOM & Microsoft because I'll hold them forever and collect dividends.
So now my initial $2,500 in Sprint is still in Sprint and I have 2 New stock positions that I didn't have to pay for.
Tying from Tablet so bare with me
This post was edited on 5/21 at 7:06 pm