One thing I do know for sure… it’s time to end this year with MORE GAINS.
Our trades this week keep in mind some end of the year themes, including tax-loss selling, sector rotations, and growth-value preference reversals. The end of the year being on the start of a weekend this year with stocks reaching for all-time highs gives our strategy a nice boost because the anticipation of what is going to happen next has never been greater.
The end of the year is a great time for investors and traders to take stock of how they fared the previous year, and evaluate what was working for them. Capital gains are taxable, so it is a good time to take some of these gains off of the table if you haven’t. The beginning of the year is a good time to reassess how much risk you want to take with options, and begin again with our favorite strategy of doubling up your initial investment, pulling that out, and then trading with house money beyond that. Of course, some people don’t need this money as much, so if you have made gains you might decide to leave that money in your account to start off this year. Either way, I hope you enjoyed trading with me so far!
The end of the year also brings us the final day of tax-loss selling. Investors and traders will often take losses on the last day of the year because they can write it off against other gains, their income, or future gains that they may earn in future years. If you have net trading losses for the year you can write off up to $3000 against your income this year, and every following year until you run out of losses to carry forward. If you have questions about your tax situation be sure to reach out to a CPA or contact the IRS hotline.
Now, let’s end this year on a high!