Strategies

What is Tax-Loss Harvesting?

Selling losing investments to reduce your tax bill

Full Explanation

When you have losing investments, you can sell them to create a "loss" that offsets your gains on winning investments — reducing how much tax you owe.

Pro Tip

Be careful of the wash-sale rule: you can't immediately rebuy the same stock after selling for a loss.

Related Strategies Terms

Growth Investing

Buying companies growing fast even if expensive

Buy and Hold

Buy stocks and keep them for years

Dollar-Cost Averaging

Invest a fixed amount every month no matter what

Swing Trading

Holding stocks for days to weeks to capture medium-term moves

View all Strategies terms →

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