Let's say I buy $10,000 worth of a stock, and 6 months later it's worth $100,000.
So I sell the stock for $100,000, but I immediately change my mind and re-buy all $100,000 of it.
I realized short-term gains of $90,000, so I have to pay $90,000 * 30% = $27,000 in taxes.
So I just lost a ton of money for no reason… I have the same position I did a moment ago, I'm just $27,000 poorer.
Do I have this right? Do I have to be super careful never to sell my stock until it's no longer a short term gain?
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