What are some basic resources for someone to learn more about how to do this? What are the main tax considerations?
1 Like
"What are some basic resources for someone to learn more about how to do this? What are the main tax considerations?
Lisa,
By âthisâ, Iâm assuming you mean âtechnical analysisâ, and Iâd be happy to point you toward resources a beginning chartist would find useful except for the fact that youâre a subscriber to TMF newsletters. You need to ask them your question.
Arindam
OK, I guess I thought I was asking anyone who reads MF boards, including the official TMF people. Sorry.
"What are some basic resources for someone to learn more about how to do this? What are the main tax considerations?
Lisa
By âthisâ, Iâm assuming you mean âtechnical analysisâ, and Iâd be happy to point you toward resources a beginning chartist would find useful except for the fact that youâre a subscriber to TMF newsletters. You need to ask them your question.
Arindam
OK, I guess I thought I was asking anyone who reads MF boards, including the official TMF people. Sorry.
Okay, first of all, all boards are provided courtesy of the Motley Fools. Who frequents those boards varies, but is not restricted. So, personally, I do not feel any apology for submitting an honest question is necessary. But a better idea of what you are asking about would be helpful. Is it technical analysis in general and how it is applied to equities or a specific focus?
As far as tax considerations go, the key is mainly that anything less than 1 year is considered short-term by the IRS and is taxed at regular income rates (but you are NOT credited as earned income so canât apply to IRAs or Roths). Most technical trades are far ashort of a year, but not always.
Be more specific if you can and we can try and help sort through what you are looking for.
LakeDog
1 Like
ââŚpersonally, I do not feel any apology for submitting an honest question is necessary.â
Lake,
Yes. Honest questions require no apology. But lazy ones do.
You have heard of something called a âsearch engineâ, right? Thatâs where her questioning about using TA to make investing decisions should have begun.
Arindam
1 Like
Lakedog,
Thanks for your response. Somehow I did not see it until today. I was not specific enough in my original question. I was looking for a recommendation for a beginnerâs tutorial or even an introductory book. I havenât been too active on the TMF community boards, but I have been impressed with the discussions I have read.
I have always been a buy-and-hold investor, but my gut is telling me that some things are different right now. I feel it is time to diversify my strategies. I will continue to hold those same stocks for long-term investments, but I am now learning to trade short-term with money that would have been sitting on the sidelines otherwise. Since this original post, I have found a newsletter that is helpful, but more geared to people who already have a basic understanding. I have also found a couple of introductory videos that were too simplified to be helpful. But, slowly figuring things out.
One specific question I have not been able to figure out is what constitutes a âsubstantially identical securityâ as far as a wash sale is concerned. I am cautious, and would like to avoid this situation. For example, if I buy and sell SPY at a loss in a taxable account, will it be a problem if I am automatically buying an S&P500-index-fund in my 401k every two weeks? Not sure if that is considered to be equivalent, or if it doesnât matter since one is in a retirement account. I thought this situation might be a typical one that any swing trader might have already come across.
I apologize for not using the search engine as my first source. I was hoping for a higher quality recommendation from someone who has successfully used technical trading techniques. I figured the search engine would lead me to sources who paid Google to be put highest on the list. Quillnpenn had responded to a couple of questions that I asked on other boards with intriguing responses that gave me hope that there was still money to be made during times when it is hard to even look at my buy-n-hold stocks. I feel we are in a very unusual time economically. Just trying to learn some new tricks as a way to adapt. I am easing into it. Good luck to you.
LisaM
In regards to your specific question, unfortunately, if a security is sold in a non-retirement account at a loss, then an identical investment is bought in an IRA (within the 30 day period), the result is still a wash sale. The wash sale rule applies across all of your accounts, including your non-taxable retirement accounts, no matter where they are held. IRS looks at them as one pile.
What constitutes substantially identical is more arguable; however, SPY versus any other S&P index fund are substantially identical to me.
Most true short-term traders donât panic about the wash rule for a multiple reasons. Mainly, using stop losses, the amount of write-offs you are âlosingâ are typically small. Itâs part of the process and part of the whipsaws.
As far as resources to learn more technical analysis, there are also other sources to refer to such as Investopedia to browse. And there is an incredible array of Youtube videos, but yes, you have to beware of the sources. I would take a good look at Stockcharts.com. They have an amazing section called chart school that will help explain some technicals and discussions. Itâs also an excellent reference source to understand things as they come up. They also have StockChart TV which has most often 30 minute videos that are often geared to new folks as well as current. As well, you can search back episodes on Youtube under stockcharts. Your brokers website may have some basic learning section, some of which are quite good. TDAmeritrade has an amazing educational section, plus they do webcasts daily. They have folks who do different levels of discussions, often making an example portfolio and following it weekly. You can find an instructor you like and follow them to help learn. All episodes are archived and available here: TD Ameritrade Events. Or, search their Youtube section.
Not sure that helps. I donât hang here much anymore, new format is less enjoyable, but your reply emailed me, so feel free to ask more specific questions if I can help point you towards more resources.
Best of luck,
LakeDog
Thanks so much! I will check these resources out!