End Of Year: Take Your Hits and Get Out

If Kirk Kerkorian can admit he was wrong and got out of GM, you can do the same. The best way to make money trading is to let the winners run and get out of the losers. You have to be patient enough to let a trade develop but there are times to just get out. This is the time of year to get out. Take the tax write-off because you need it against all the other profit you made. I know you’ve been told this many times but it is one of simplest trading “strategies” out there and it surprises me how long people will let a bad one run. Part two of this story: start looking for tax loss trading. These are stocks that are reacting to exactly what I’m talking about. They are trading down the last couple days of the year and then start trading back up as soon as the new year starts. I don’t have any picks to give you but they are always the stocks that underperformed during the year and loss money for their investors. Buy them on the last few days of this year let them ride down a bit and then ride them up next year. It certainly can be a multiple year dog but this has been a good strategy for many traders. Kerkorkian sure as hell knows what he’s doing but the reason he’s successful is he knows when he’s made a mistake and he knows what to do about it, SELL.

 

 

 

 

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