How can I add to a profitable position within 30 days after my initial buy without taking the risk of triggering the “wash sale rule”? I spoke to an advisor at Charles Schwab about this issue and he also wonders why you tube traders seem to be unconcerned about the “wash sale rule” as they add to positions. Also, when they buy a stock again after it has been sold. The wash sale rule means that if a stock is purchased within 30 days of purchasing it the first time and then is sold for a loss…… that loss can’t be claimed. Am I missing something?
@autoteller Great question about the wash sale rule! Before diving in, I want to address the comment from the Schwab representative about “RUclips traders.” As a high percentage of us here at Mission Winners are clients of Schwab, we do take some issue with being classified in that manner. RUclips is simply one of the many tools we use to educate, connect, and share insights-it’s part of a larger strategy, not a defining characteristic of who we are as traders and or investors. Now, to your question: Let’s take a moment to reframe it for clarity because the wash sale rule might be causing a bit of confusion here. The rule only applies when you sell shares at a loss and then repurchase them (or a substantially identical stock) within 30 days. Adding to a profitable position doesn’t trigger the wash sale rule, as there’s no loss to disallow. So, a more precise way to frame the question might be: “Can I add to a profitable position within 30 days without worrying about the wash sale rule?” The answer is a resounding yes-you can. Now, onto how the rule works. The wash sale rule is designed to prevent traders from claiming a tax loss on shares they sell at a loss and then quickly repurchase. But when you’re adding to a position, especially one that’s already profitable, the rule doesn’t apply. It’s really about losses, not gains or additions to an existing trade. As for our approach, we’re all about keeping losses small and avoiding significant drawdowns. If a trade isn’t working, we cut it quickly to protect our capital. Significant drawdowns not only hurt your account, but they can also erode confidence-and we’re not interested in carrying either. Protecting capital is always our top priority, and it’s the cornerstone of how we trade. As for taxes, we don’t let them dictate our trading decisions. Too often, traders hold onto a position to avoid short-term capital gains taxes, only to watch the stock pull back-or worse, turn into a loss. Instead, we focus on capturing gains when the opportunity is there. Just this weekend, our VIP members shared their biggest stock wins, and a clear theme emerged: every year, a handful of standout names drive portfolio results, easily offsetting the small losses along the way.
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Thank you, my kind man. Happy Holiday.
Could you please include DTCR in your list of ETFs. Data Centers.
Thanks a lot for another great and simply market analysis! Realy like it and always am waiting for a new one :)
THANK YOU for kind words. Love helping!
Thanks Pat 👍
My pleasure!
Thank you
Love helping!
@@MissionWinners with 1 second u know stay away from certain etfs. Love it.
How can I add to a profitable position within 30 days after my initial buy without taking the risk of triggering the “wash sale rule”?
I spoke to an advisor at Charles Schwab about this issue and he also wonders why you tube traders seem to be unconcerned about the “wash sale rule” as they add to positions. Also, when they buy a stock again after it has been sold.
The wash sale rule means that if a stock is purchased within 30 days of purchasing it the first time and then is sold for a loss…… that loss can’t be claimed.
Am I missing something?
@autoteller
Great question about the wash sale rule! Before diving in, I want to address the comment from the Schwab representative about “RUclips traders.” As a high percentage of us here at Mission Winners are clients of Schwab, we do take some issue with being classified in that manner. RUclips is simply one of the many tools we use to educate, connect, and share insights-it’s part of a larger strategy, not a defining characteristic of who we are as traders and or investors.
Now, to your question: Let’s take a moment to reframe it for clarity because the wash sale rule might be causing a bit of confusion here. The rule only applies when you sell shares at a loss and then repurchase them (or a substantially identical stock) within 30 days. Adding to a profitable position doesn’t trigger the wash sale rule, as there’s no loss to disallow. So, a more precise way to frame the question might be: “Can I add to a profitable position within 30 days without worrying about the wash sale rule?” The answer is a resounding yes-you can.
Now, onto how the rule works. The wash sale rule is designed to prevent traders from claiming a tax loss on shares they sell at a loss and then quickly repurchase. But when you’re adding to a position, especially one that’s already profitable, the rule doesn’t apply. It’s really about losses, not gains or additions to an existing trade.
As for our approach, we’re all about keeping losses small and avoiding significant drawdowns. If a trade isn’t working, we cut it quickly to protect our capital. Significant drawdowns not only hurt your account, but they can also erode confidence-and we’re not interested in carrying either. Protecting capital is always our top priority, and it’s the cornerstone of how we trade.
As for taxes, we don’t let them dictate our trading decisions. Too often, traders hold onto a position to avoid short-term capital gains taxes, only to watch the stock pull back-or worse, turn into a loss. Instead, we focus on capturing gains when the opportunity is there. Just this weekend, our VIP members shared their biggest stock wins, and a clear theme emerged: every year, a handful of standout names drive portfolio results, easily offsetting the small losses along the way.
Steel is rusty