This post is more for us out there who are trading with 5 figure-and-under portfolios, not the people who have millions+ invested (although this may apply to them, too).
Realized gains are taxed on top of your income, so if your tax rate is 35% and you make $1000 in the market, you’ll only take home ~$650. Obviously buy and hold forever is a way to mitigate this, but for those who want to take profits off the table, what’s the plan? Between taxes and inevitable bad trades that lose you money, it seems you’ll grind for a pittance return.
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