I'll be holding through the reverse split & operat
Post# of 1217
(Total Views: 300)
Posted On: 12/18/2020 10:24:23 AM
I'll be holding through the reverse split & operating to my usual proven strategy for "trading through a reverse split":
- Buy cheapest shares available on day prior to r/s - already got my .0002s.
- After r/s, get broker to split out tax lots on legacy shares.
- If cheapest available prior to r/s not in profit immediately after r/s (usually they are on a 1000:1), start trading new shares from bottom up.
- If legacy pre-r/s shares not going to go into profit by the time they have been held for 12 months, build up inventory of cheap new shares at 11 month point.
- Take 30-day timeout from buying.
- Just before 12-month point, sell legacy shares for short term tax loss (top OTC traders are 35% tax payers) - book 35% tax saving to spreadsheet of what stock owes me. In the case of $AHIX, it owes me nothing anyway - profits continually trading since 2017 are 20 x cost of pre-r/s shares I have.
- Do not buy back shares at any price for 30 days after the controlled deliberate sale for a tax loss.
- Sometimes, the cheapest shares bought the day prior to the r/s can be mass flipped one tick up - especially when amateurs panic and sell off in an uncontrolled manner at open (for which they will not get a tax loss credit since if they bought any at any price in the last 30 days). That may happen today on $AHIX in which case I will take the profit at .0003 and reload at .0002 if possible.
- Buy cheapest shares available on day prior to r/s - already got my .0002s.
- After r/s, get broker to split out tax lots on legacy shares.
- If cheapest available prior to r/s not in profit immediately after r/s (usually they are on a 1000:1), start trading new shares from bottom up.
- If legacy pre-r/s shares not going to go into profit by the time they have been held for 12 months, build up inventory of cheap new shares at 11 month point.
- Take 30-day timeout from buying.
- Just before 12-month point, sell legacy shares for short term tax loss (top OTC traders are 35% tax payers) - book 35% tax saving to spreadsheet of what stock owes me. In the case of $AHIX, it owes me nothing anyway - profits continually trading since 2017 are 20 x cost of pre-r/s shares I have.
- Do not buy back shares at any price for 30 days after the controlled deliberate sale for a tax loss.
- Sometimes, the cheapest shares bought the day prior to the r/s can be mass flipped one tick up - especially when amateurs panic and sell off in an uncontrolled manner at open (for which they will not get a tax loss credit since if they bought any at any price in the last 30 days). That may happen today on $AHIX in which case I will take the profit at .0003 and reload at .0002 if possible.
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"Per Ardua Ad Astra" - "Through Adversity To The Stars"
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.
A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.