This is a noob question. What do I do with this meme stock I purchased? I only invested a grand. Do I sell when it’s high and get out of it? Or hold on to it? I know nothing about trading.

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Buy low sell high

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HODL

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Don’t sell it unless you need the money, sell it when it gets high and are comfortable with the amount of profit you made.

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If you sell before 1 year of owning you'll owe short term cap gains taxes which is about 35%, if you hold til after 1 year it drops more towards your income tax rate. But that runs the risk of holding a meme stock for that long

helpful

No such thing as ST capital gain rates. Any gains that are not LT are taxes at ordinary income rate ie, taxed the same rate as your wages. .. anyway .. the risk there is the incremental cost you lay at ordinary rates vs LTCG rate. Let’s assume your effective tax rate is 30% and you’re not in the highest tax bracket, the LTCG rate would be 15%. So the opportunity cost is the delta between your LTCG rate and your ordinary rate NOT just the ordinary rate.

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If it’s a meme stock that’s popped off only because of Reddit mentions, sell it when it’s high. Take your profits. If it’s a stock you invested in because of due diligence and research and you feel the company will performed well for years to come, hold.

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8/28 Thread (General):

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