As the end of the year draws near, one question remains for traders…
“Should I sell my losing stocks before the end of the year?”
On the last trading day of the year, every year, traders take part in what’s known as “tax loss harvesting.” This is where a trader (or investor) will sell a stock that was a loss for their portfolio. This practice then involves replacing the lose with a similar win. By “harvesting” a loss, traders (and investors) are then able to alter their taxes, income, and gains for the year accordingly.
It’s a bit of a convenient avenue to reduce investment losses.
An avenue that opens up the potential for some serious last minute gains (if you know what to do).
Luckily, John Carter does! The last day of the year is actually one of his favorite days of the year to trade. Why? Because he knows how to exploit this annual event.
You see, this annual pattern is so predictable because investors unload losing positions and lock in tax deductions. Normally, market makers would step in and buy these sell orders right away. But on the last trading day of the year, they don’t. Instead, they wait until the sellers get desperate. Inevitably, these stocks plummet because market orders flood in as sellers panic to get filled. This creates the perfect storm for savvy traders like John — it offers a low-risk opportunity for potentially high rewards.
It’s like an expert trader’s Christmas.
The best part for you?
John’s been doing this for so long now, it’s like second nature. So for the last few years, he’s shared his knowledge surrounding the most predictable day of the year by hosting a live trading day.
What’s live trading?
It’s a special session we host here at Simpler Trading where we open our trading room for anyone and everyone to join and watch our traders in action.. In this case, the trader is John. Live trading really is the most ideal way to actually see things in action. Not only is it occurring live, so you can get in on the action, too, but you also have the unique ability to ask questions directly to fellow members and our traders. You’d be amazed how much you can learn during just one session.
That’s why John really loves to live trade during the last trading day of the year, because it’s such an exciting trading day (assuming you’re on the right end of the market). Normally, it’s a rather scary day for traders as they watch the market plummet and their account follow suit.