Investing in individual stock......?

Question

People on this forum are buying and selling individual stocks. Do you take into account the tax liaibility on a daily trade? The FED taxes as ordinary income, but the state I live in taxes at 12% if held less that one year(MA). Im not talking about anything complicated, just they average person trading.

Answer 1

Most people who are normal investors/traders do not really care about the taxes on trades.   If you have profits, you take them, so even you get a little less, you still have money in your pocket.

Traders don't worry about the taxes on profits, they can always sell their loosers.

It's worse when you live in a Liberal state, but the only thing you can do is remember how you feel today and when election time comes around vote Republican

Answer 2

I don't worry about it, it comes out of my profits which beats any investment by a long shot.