Explain to me how I'm the idiot...Because I simply dont understand.

[newwurldmn]

The beauty of the brokerage industry is that they let us participate in an activity that we are unqualified for.
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QUOTE OF THE DAY

 

[vanzandt]

I am fully aware of the wash sale rule. But my understanding is that when you take a loss on a position and re-enter the position the previous loss is "washed" and what happens is that loss gets added to you cost basis in the new position and thus lowering the basis in the new position.

So why is it that after these overnight basis adjustments my cost basis in the new positions is HIGHER? How could my cost basis go UP after this adjustment?

I am totally not trying to sound condescending here, but why would you even care?
Your balance is gonna be right either way, let your accountant worry about it at the end of the year. That's why they exist.

Your focus should be on winning the next trade using the chips in front of you. If IB locks up a few and you fail to understand why, it doesn't matter, your balance is still correct. I have found that worrying about stuff like this really shatters the mojo that's required to get in the groove.
There's always gonna be something that distracts/upsets you. Don't let it.
Focus on what's really important... winning the next trade. That's all that matters.

 

[jys78]

The beauty of the brokerage industry is that they let us participate in an activity that we are unqualified for.

The only thing you need to worry about is when to hit buy/sell. They will take care of the rest. Just trust them.

I agree. Why is he even thinking about this?