RE:RE:I can relate.12342 wrote:
DONT FORGET after selling at a loss
you have to wait for 30 days before you are allowed to buy it again.
That is not entirely accurate. What you are referring to in the USA is called a Wash Sale rule and in Canada it's called a Superficial Loss rule. You sell an equity at a loss only to buy that same equity back within +- 30 days of the sale. In this instance you would effectively lock in a capital loss from selling while purchasing a new "starting" position. The IRS and CRA will disallow such transactions, meaning that when you file your taxes you cannot claim a capital loss.
There is actually no mechanism preventing you from continuously purchasing the exact same stock and selling it for a loss. I guess the exception would be how deep your pockets are.