Hi,
I am a new trader and plan to start trading on a paper account first. Meanwhile, I also spent some time on understanding wash sale rules. From what I understand, wash sale doesn't have impact on trading except undesired loss deferral. Am I right?
Basically, I want to trade two stocks (say spy and qqq). So to avoid loss being deferred to next tax year, I will
1. Trade SPY from Jan.2 to Nov. 30 and close all SPY positions on/before NOV.30, and start trading SPY again on next Jan.2
2. Trade QQQ from Feb.1 to Dec.31 and close all QQQ positions on/before DEC.31, and start trading QQQ again on next Feb.1
Is this the right way to avoid loss being disallowed in tax year? I want to keep trading all the year, so I split SPY/QQQ to different time frames.
Thanks a lot for your answers.
I am a new trader and plan to start trading on a paper account first. Meanwhile, I also spent some time on understanding wash sale rules. From what I understand, wash sale doesn't have impact on trading except undesired loss deferral. Am I right?
Basically, I want to trade two stocks (say spy and qqq). So to avoid loss being deferred to next tax year, I will
1. Trade SPY from Jan.2 to Nov. 30 and close all SPY positions on/before NOV.30, and start trading SPY again on next Jan.2
2. Trade QQQ from Feb.1 to Dec.31 and close all QQQ positions on/before DEC.31, and start trading QQQ again on next Feb.1
Is this the right way to avoid loss being disallowed in tax year? I want to keep trading all the year, so I split SPY/QQQ to different time frames.
Thanks a lot for your answers.