Here's the thing with selling and buying back in l

Here's the thing with selling and buying back in later. You'll want to wait at least 31 days to buy back otherwise it's a wash trade and your tax write offs are...poof.

Not sure how much you are down, but what you can do is sell when you're comfortable. That locks in your tax deductions...then after 31 days look for another good entry point.

For instance, say you would have sold over a month ago and were down 50%. Let's make this simple and say you had invested $6k. So, at 50% down, your $6k is now worth $3k and you sell it. You are allowed a max of $3k per year in tax write off from investment loss. So now you have that part covered... Lets say after you sold over a month ago you were still watching the stock and noticed it drop to .02 monday so you buy $3k worth. On Tuesday you notice it's up 70% and you sell before it drops.

You just made $2100 to add to he $3k you had left from your loss...so now, out of your initial $6k investment you have $5100 left and can still claim another $900 in tax write offs...or you can make another $900 in gains before having to pay short term gains on it. How ever you want to look at it...

Of course, this is all easier said than done. But, at least you get the point.

On the other hand, if you're down and hanging by a thread and there's nothing notable left to salvage, you may want to consider hanging on until the end of the year in case someone throws a hail mary and you can recoup some losses.

That reminds me...if you truly haven't been in the OTC long...you will notice an end of year sell off in the majority of the stocks. Something to keep in mind...