how to use capital loss

**zhang242463** Mon Apr 14, 2008 7:34 pm

how to use capital loss
I have huge capital loss now. How should I plan my future to use those capital loss effectively? I don't plan to invest in stock any more. Is there any suggestion on that?

If I put saving in bank, interest will be taxed regardless of capital loss, so what can I do here?

Thanks

**goog** Tue Apr 15, 2008 2:12 am

Hi zhang242463,

I feel sorry for your situation. But please don't be too frustrated. I lost almost all my savings at a time too.

I pretty much can tell that you are still young and investment will be part of your future life, no matter stocks, bonds or real estate, etc. Personally, I believe stock index will do much better than interest or bonds in the long term. I would say just stick with long term, even without any stock picks, you should be able to utilize your capital loss sooner or later.

Wish you the best.

**zhang242463** Tue Apr 15, 2008 9:54 am

i lost 7 years of saving

**zhang242463** Tue Apr 15, 2008 10:05 am

i'm very depressed. how many 7 years does one have? 5 maybe? 20% is lost.
zhang242463 wrote: i lost 7 years of saving

**ppnewnew** Wed Apr 16, 2008 12:06 am

zhang242463 wrote: i'm very depressed. how many 7 years does one have? 5 maybe? 20% is lost.
zhang242463 wrote: i lost 7 years of saving

Really sorry to hear about that. I lost huge in the past too... even after following Blast, once a time I lost 50% of my whole account.
Name it... OCA, JRCC, ICO
It was painful. In my view, you can claim some tax refund with part of your capital loss. The amount you can use is limited, though. After that, I have no idea how to use it... maybe you can carry some of your loss to next a few years for tax refund? I am not sure about that.
Really hope I can help.

**xxyygorich** Wed Apr 16, 2008 6:17 pm

Re: how to use capital loss
Are all those loss in option?

If it's stock, just hold them but you need to shuffle them a little bit.

Sell some to take loss, and buy them back after a month.

zhang242463 wrote: I have huge capital loss now. How should I plan my future to use those capital loss effectively? I don't plan to invest in stock any more. Is there any suggestion on that?

If I put saving in bank, interest will be taxed regardless of capital loss, so what can I do here?

Thanks

**shu_wd** Sat Apr 26, 2008 7:09 am

Re: how to use capital loss
Zhang,

really really sorry to hear that. You can carrier the loss over , I believe.

My own experience tells me pick and investment style (value/momo etc) is secondary issues. The most important is trade operation and money management.

Another thing is don't expect to get rich in one night. That will blind your trade.

**zhang242463** Thu May 15, 2008 10:47 am

Re: how to use capital loss
I went to see psychiatrist two days ago. I am in deep depression. I am not confident about myself at all and can't focus on anything. someone help me...

**lxs5666** Thu May 15, 2008 1:42 pm

Please take it easy. All the money you lost can be earned back in future. Think about all the people dies in the earthquake in China.

Take care!

**xxyygorich** Fri May 16, 2008 4:12 am

Re: how to use capital loss
Are u kidding?

Don't think the money you loss. Think about people in Sichuan who lost their lifes in the quake. You will feel very lucky to be able to breathe air.

The loss from CCU and CMLS is painful. But nothing was wrong with the your or Blast's judgement. You must learn a lot from reading those court docs. You can be a second-hand lawyer now. :)

I am kind of missing you already. Without you, who comes to the forum to challenge BLAST with all kinds of questions? He he...

See you are NOT nothing.

Stand up!

I lost a lot on CMLS too. Did you feel better now?

zhang242463 wrote: I went to see psychiatrist two days ago. I am in deep depression. I am not confident about myself at all and can't focus on anything. someone help me...

**shu_wd** Fri May 16, 2008 11:29 am

Re: how to use capital loss
Oh, be strong !. There are more thing around us than stock and money. you actually did very good job for those court docs, you are just too aggressive and leave too small margin.

we need you come here to post , stand up man.

xxyygorich wrote: Are u kidding?

Don't think the money you loss. Think about people in Sichuan who lost their lifes in the quake. You will feel very lucky to be able to breathe air.

The loss from CCU and CMLS is painful. But nothing was wrong with the your or Blast's judgement. You must learn a lot from reading those court docs. You can be a second-hand lawyer now. :)

I am kind of missing you already. Without you, who comes to the forum to challenge BLAST with all kinds of questions? He he...

See you are NOT nothing.

Stand up!

I lost a lot on CMLS too. Did you feel better now?

zhang242463 wrote: I went to see psychiatrist two days ago. I am in deep depression. I am not confident about myself at all and can't focus on anything. someone help me...

**zhang242463** Fri May 16, 2008 12:34 pm

Re: how to use capital loss
shu_wd wrote: Oh, be strong !. There are more thing around us than stock and money. you actually did very good job for those court docs, you are just too aggressive and leave too small margin.

hi, everytime, I look back, I felt my life is destroyed. I don't even have courage to stand up and win it back now. from where can I pick it up? I can never recoup the loss and I will not be able to buy a house to afford a normal living.

**xxyygorich** Fri May 16, 2008 1:20 pm

Re: how to use capital loss
Don't think this way.

You made mistakes for sure. But NOTHING, there is NOTHING which can destroy your life until you give up.

I don't know if you have a family. Think about them, especially your parents. If your wife blamed your loss, take it easy.

For the question of from where to pick up, think about this way.
In the next a few years, ALL your capital gain will be tax free. The more you gain, the more loss you cover. Don't bet on one pick heavily from now on.

The only mistake you made was money management, not you picks. Your picks were correct, but when you played options, you added a time constraint on your positions. If you are still holding the stocks, you are not in a bad shape right?

Seriously, we are missing your posts. Don't give up. Go out for a trip or something.

Wish you the best luck!

I've pmed you my phone number. Call me if you need someone to talk to.

zhang242463 wrote: shu_wd wrote: Oh, be strong !. There are more thing around us than stock and money. you actually did very good job for those court docs, you are just too aggressive and leave too small margin.

hi, everytime, I look back, I felt my life is destroyed. I don't even have courage to stand up and win it back now. from where can I pick it up? I can never recoup the loss and I will not be able to buy a house to afford a normal living.

**bzsmile** Fri May 16, 2008 2:07 pm

zhang242463,
I feel very sad for your loss. You've done a great job in the past several months and I believe you can do better in the future. It is unfortunate that you lost money this time. However, with the expertise and experience you gained, you can make good money in the future.
As other people pointed out, the only mistake you made is money management, which has been reiterated by many investment gurus. Never put all your eggs in one basket is the number one rule.
Forget about your loss and move on. Compared to those who lost everything in the earthquake, how blessed we should feel we are!
Good luck and hold on tight. Look back in one year you will realize what you lost is nothing compared to what you have.

bzsmile

**zhang242463** Fri May 16, 2008 3:56 pm

Re: how to use capital loss
xxyygorich wrote: I've pmed you my phone number. Call me if you need someone to talk to.
Thanks for the phone number. I am afraid I'd be Xiang Lingshao if I really called you. It is destructively depressive for me. I might be brought down by this...