This question was asked and I chuckled, When Should you sell stocks at a capital loss for tax purposes?

Now I mean no disrespect when I chuckled but the fact is this, I rather pay $1,000,000.00 in taxes and make $3,000,000.00 than to lose $800,000 to offset my gains. There have been several noted strategies in the market to offset your gains but the fact is the fed is always going to get its cut and generally at the same bracket because mostly all gains are taxed in the same bracket.

If you are winning in this market, good for you! Keep winning and don’t look back, don’t worry about the fed they will get theirs one way or another. If you are trading a 70% winning portfolio and have a 30% drawdown that is plenty to meet the maximum allowance for loss.

My advice to you as business finance minor would be to keep growing and diversifying your portfolio, don’t worry about your gains. The more diversified you are the closer you will be to the 70% mark I was discussing.

I hate to keep this article so brief but that is the best advice I can give you. As always you need to consult a tax professional or professional investor for dead on advice.