Does it often make sense to sell an equity while it still is a short-term loss?
Let's imagine Juanita. Juanita pays taxes in the USA. Juanita bought equity XYZ on January 1 and sold it for a profit of $100 a month later. Thus, it was short-term gain. Juanita also bought equity CRAP on January 1 for $100. Now, let's say it's December 1 of the same year, and CRAP is worth only $25. Let's not make things too complicated and assume Juanita always has some short-term and long-term gains from which to deduct losses. Let's also assume that Juanita's short-term capital gains are taxed at a higher rate than her long-term capital gains, which I think is true in most, or maybe even all, situations.