I’m worried about wash sales and am not 100% sure how they work. Say I’m coming out of a bad position. I bought AMD at 120 a few months back. I averaged down to 105. Now that it’s rebounding I want to liquidate at least half my shares. Using TD Ameritrade and I am under the assumption I’m set to first in first out. I sell 50 of my 250 shares as I start to get towards even. While I’m not ‘closing’ the position I’m selling at a loss (first in 120, first out 103). My average lowers to 103. I sell another 50 shares at 104, technically for a gain the following day. Am I incurring wash sales, even though I am not closing the entire position? Want to know if it’s smarter to close the entire position at once when it’s in the green or if there is no downside to closing it out little by little.
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