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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: rayvt 🐝  😊 😞
Number: of 6131 
Subject: Re: "Dozens" Screens
Date: 10/25/25 2:16 PM
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Short term gain of $10000 on Monthly.
Short term loss of $1000 and long term gain of $1000 on Dozens = net $9000 short term gain, $1000 long term gain.
Long term loss of $1000 and long term gain of $1000 on Dozens = net $10000 short term gain, $0 long term gain.


Sure.
If your trading screens are in sub-optimal locations.

Optimal location for short-term trading is in tax-advantages accounts. IRA and Roth IRA.

I just took a look at mine.
The "high-growth" (and possibly high volatility) screens are annual and in regular taxable accounts. That's things like VONG holdings and The "Magnificent Seven" and Top 10 of SPY.

The monthly screens are all in IRAs and ROTHs.

I did have a brain-fart a few years back and put a lot of B&H income-generating and high-yield funds & stocks into the IRAs & ROTHs, which I am slowly correcting.

Growth belongs in tax advantaged accounts, dividends belong in taxable accounts.


But, hmmm....
$9K ST at 22% and $1K LT at 15% = $2130 tax
$10K ST at 22% and $0 LT = $2200 tax
That's a $70 difference. BFD. On a $10,000 gain.
More than nothing, but insignificant in a total tax bill of $10,000 (avg for middle-class family in 2021).

But look at me, brushing off a $70 cost when I buy half-price used books instead of new books to save a few bucks.

-----------------

I guess a lot of it depends on how long you have been doing it and how large your portfolio is.
If you are just starting out, or don't have a 6+ figure portfolio, or don't have a good mix of taxable & tax-advantaged accounts then playing the ST loss game may have some effect.

$10,000 ST gain doesn't usually happen with small portfolio, though.
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