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Message
Is there ever a time to sell at a loss?
Posted on 3/26/20 at 10:33 pm
Posted on 3/26/20 at 10:33 pm
With this current upswing in the market I’m thinking about selling at a relatively small loss (6-8%) because I expect another series of dips as current events drag on. Is this a reasonable strategy if I plan on investing right back into the market? Or should I hold positions and continue to buy while lowering my average price per share along the way?
I’m not trying to day trade. Just trying to get as many shares as possible at these discounted prices to then hold in the long run.
I’m not trying to day trade. Just trying to get as many shares as possible at these discounted prices to then hold in the long run.
This post was edited on 3/26/20 at 11:02 pm
12
Posted on 3/26/20 at 10:34 pm to SaintTiger80
I'm still holding Blockbuster. You tell me.
Posted on 3/26/20 at 10:41 pm to gobuxgo5
Did you know Blockbuster had the opportunity to buy Netflix and turned them down?
But I hear what you’re saying. I know there is no crystal ball answer to all this. I just want to make sure my thinking is at least somewhat sound before I make some fundamental mistake.
But I hear what you’re saying. I know there is no crystal ball answer to all this. I just want to make sure my thinking is at least somewhat sound before I make some fundamental mistake.
This post was edited on 3/26/20 at 10:44 pm
Posted on 3/26/20 at 10:52 pm to SaintTiger80
Yes.
Posted on 3/26/20 at 10:54 pm to SaintTiger80
I’ll buy the man who accurately answers this question in light of the current market conditions a fifth of the best inexpensive alcohol of his choice.
Posted on 3/26/20 at 10:57 pm to SaintTiger80
If you think it's going to go down, its good to sell
If you think it's going to go up, it's good to buy
If you think it's going to go up, it's good to buy
Posted on 3/26/20 at 11:04 pm to SaintTiger80
quote:
Is there ever a time to sell at a loss?
I sold my puts today for a big percentage loss. The market seems determined to rise regardless of news, so I gave up and bought calls.
Posted on 3/26/20 at 11:05 pm to SaintTiger80
It's not about where it came from, it's about where its going.
Posted on 3/26/20 at 11:21 pm to SaintTiger80
In a taxable account (non ira/hsa), it might make sense to sell at a loss if you can tax loss harvest.
Just went through this actually. I found out back in December that my parents had a taxable account at Janus. In January, I transferred it to Fidelity which meant selling the Janus funds for capital gains of 100k.
I invested that in Fidelity in VTI and VXUS. During the last few weeks, at one point that investment was down 60k. So I sold all of VTI and VXUS then I immediately bought the same dollar amounts in ITOT and IXUS. This avoids a wash sale and my stock exposure is the same as before.
The advantage is the 100k capital gain is now reduced by 60k. So now they only have to pay taxes on 40k.
If another big drop happens, I can sell ITOT and IXUS at a loss then buy something equivalent like SCHB and SCHF. This would further reduce the amount of capital gains.
Just went through this actually. I found out back in December that my parents had a taxable account at Janus. In January, I transferred it to Fidelity which meant selling the Janus funds for capital gains of 100k.
I invested that in Fidelity in VTI and VXUS. During the last few weeks, at one point that investment was down 60k. So I sold all of VTI and VXUS then I immediately bought the same dollar amounts in ITOT and IXUS. This avoids a wash sale and my stock exposure is the same as before.
The advantage is the 100k capital gain is now reduced by 60k. So now they only have to pay taxes on 40k.
If another big drop happens, I can sell ITOT and IXUS at a loss then buy something equivalent like SCHB and SCHF. This would further reduce the amount of capital gains.
Posted on 3/26/20 at 11:29 pm to SaintTiger80
I think this plague, companies in a bind, and all the unemployment issues have not just magically disappeared.
Posted on 3/26/20 at 11:42 pm to EarlyCuyler3
quote:
I sold my puts today for a big percentage loss. The market seems determined to rise regardless of news, so I gave up and bought calls.
So after 3 days of upward movement you gave up your puts (expiration dates?)which were probably worthless to buy calls? Bruh.. this shite has regret written all over it..
Why not buy stock up if you were having doubts, and hedge against the options? The percentage loss on puts after these past few days is gonna be unreal bad.
Posted on 3/26/20 at 11:47 pm to Athletix
4/17 was the expiration date. You may be right. I would have thought it would have dropped by now though. My calls is are super short so I'm unloading them tomorrow for a small gain and then we'll see if it's time to go with puts or calls.
Nothing seems to make sense right now. At least puts will be a lot cheaper now.
Nothing seems to make sense right now. At least puts will be a lot cheaper now.
Posted on 3/27/20 at 7:41 am to SaintTiger80
the real answer to this is
1. when you need cash to pay your mortgage or eat
2. when the opportunity cost of having liquidity tied up in a bad stock exceeds the loss youre going to take from selling
ie. if you know there's a slam dunk but are strapped for cash
of course, if you're wrong, you lose your arse, so... good luck
1. when you need cash to pay your mortgage or eat
2. when the opportunity cost of having liquidity tied up in a bad stock exceeds the loss youre going to take from selling
ie. if you know there's a slam dunk but are strapped for cash
of course, if you're wrong, you lose your arse, so... good luck
Posted on 3/27/20 at 8:10 am to EarlyCuyler3
quote:
I sold my puts today for a big percentage loss. The market seems determined to rise regardless of news, so I gave up and bought calls.
Yikes
Posted on 3/27/20 at 8:15 am to Tiguar
quote:
ie. if you know there's a slam dunk but are strapped for cash
I hate selling at a loss, I know it’s a psychological thing and it’s hurt my portfolio.
But a few days ago I sold khc (Kraft) which I’ve held for a while at a big loss.
I sold for two reasons- first, to offset gains taxes on an earlier sale this year and Second reason was to place the cash somewhere I thought had a better chance at significant appreciation than khc.
Posted on 3/27/20 at 8:16 am to EarlyCuyler3
quote:
I sold my puts today for a big percentage loss. The market seems determined to rise regardless of news, so I gave up and bought calls.
Posted on 3/27/20 at 8:42 am to SaintTiger80
I sold some TGT last week at a small loss to buy Realty Income Corp (O). O was cheap and I wanted to get in on it. 
Posted on 3/27/20 at 8:48 am to EarlyCuyler3
Posted on 3/27/20 at 9:38 am to FieldEngineer
Did you get in sub 40? I missed that window. Had to settle for low 40's
Posted on 3/27/20 at 9:40 am to EarlyCuyler3
Maybe options trading isn't for you.
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