Originally Posted by Badger
Yes this is a taxable account so I will be waiting the 31 days. I invested in two oil companies so I might as well sell both while they are lower than the original purchase.
Tax-loss harvesting is an important tool. But since you have losses in two different oil companies, you might try the following idea instead of going to cash for 31 days if you want to stay invested in oil companies:
1. Sell one oil company and buy shares in the other oil company. Do not sell the other oil company yet. You will have the same amount of money invested in the two oil companies before and after this "exchange", so your risk will be pretty much the same.
2. 31 days later, sell the shares of the second oil company that have a loss and buy back shares of the first oil company.
The above is a pretty standard trick for folks who do tax-loss harvesting who wish to remain in the two stocks they own. It is often used with say Pfizer and Merck or Apple and Microsoft or Ford and GM, etc.