How Does FIFO or LIFO Work Selling Stocks | FIFO VS LIFO Stock Market

How Does FIFO or LIFO Work Selling Stocks | FIFO VS LIFO Stock Market

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So if you are watching this video you are wondering if you should use the FIFO or LIFO method for selling a portion of your portfolio. Well in this video I'll cover FIFO vs LIFO with regards to short term and long term shares as well as the 2 combined. I'll cover the FIFO method for selling stock and the LIFO method for selling stocks to help you save money. The LIFO method for selling stocks is one that gets passed up a lot because it is not commonly thought about. I'll show you how FIFO versus LIFO is not to be taken lightly.

FIFO LIFO trading equities will help you be more financially fluent. If you haven't seen the LIFO and FIFO explained yet, watch the video to get great content.

Hope this helps Wealth Giants,

Ryan

Intro Credit to ONdraid from panzoid

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[WealthGiantswithRyan]

Hey Wealth Giants! I hope this clears up some of your concerns about FIFO and LIFO. Let me know if you have any questions.

[TheMutantCreeper]

This really helped me figure out my first time selling stocks. Thank you.

[clarksh]

Hi Ryan, Thank you very much for your Video. it is very helpful for someone like me. I am from Germany and came to us lately. I have started to learn and day trade and I couldn't find any video to explain Fifo and Lifo like you did. thank you vey much

[matthewellis]

What happened to me recently was the first 10 shares I bought at a higher price. The next 10 shares I bought as at a lower price. The. When I sold them all at my average price for a small gain. BUT, the first ten shares I bought were sold at a loss so the ‘wash-rule’ came into play since the stocks were owned less 30 days, therefore I could not write off the losses... So my question is: if I were to purchase the second set of 10 shares as LIFO and only sold 10 shares, would I have avoided the wash rule since I still owned the first shares that were still trading at a loss??
Thank you

[vevenaneathna]

this is the first vid of urs i watched. ur doin everything smart. gunna go see where u at 10 months in the future now.

[nguyenphilo]

Can you show me how to setup lifo in TD Ameritrade app ? Please

[ychongy]

What if you are down. Bought the dip. Then sell just those shares when it goes up some but doesnt reach your purchase price even out. Then it dips and you buy the same amount of shares? Which method is better and is it even worth it to do this?

[Reza_Audio]

in case a trader or investor only care about the average price, I mean if you want to close a specific equity and want to sell all shares, does it matter which method you are using?

[benkristoffer]

so regardless of which method you use. Do you have to choose a stock you bought in the same year or it can be whenever? If it's whenever then how would you keep track if which one you sold already?

[Giggidygiggidy]

How does this work for strictly day trading where you may avg down in a position?? Should it be done a certain way to prevent selling higher priced shares as you scale out of a position?? Appreciate any details as it pertains to day trading not long term investing

[kylermiskin]

Couple questions, For tax purposes how do stocks we have not cashed out work? Do they stay in limbo what if our accrued wealth by tax season is high? do we pay on it? Then what if it drops and we lose everything next year.have we paid taxes on a loss? Exactly Wich stocks do we pay on, what we own or only what we've cashed out on. And if we cash out and reinvest can we write that off? How good are companies like td Ameritrade or Robinhood at producing acurrate tax documents at the end of year?

[zhaliam]

So every time you make a trade, you adjust accordingly to every stock?

[XPTO]

About calculating the average price of operations. Most platforms use FIFO (First In First Out). Do you know platforms that allow you to use LIFO (Last In First Out)? I think Ninja Trader doesn't have that yet. I wanted to trade stocks and futures. In advance, Thank you very much!

[passivedividendsoptions]

Have been doing a lot of swing trading lately using the LIFO method to lower my overall cost basis in some of my long term holds...Goal is to get cost basis down to $0 as fast as I can in a reasonably manner.

[somanianands]

Hey... Thanks for information. Could you please let us know how you maintain share details... Is it possible to choose which share we want to sell runtime(trading too)?

[philipdodson]

This seems like good advice for avoiding taxes in the short term, but no gain is realized until sold, so it seems that in the long run, doing this won't reduce the taxes you pay. I could be missing something though.

[yummychococookies]

Great video, really straightforward 👍

[ball]

Hi, Do you know that my account of Interactive Broker is FIFO or LIFO method for the US market?

[eddiesawyers]

I don't care about the tax, at his point I just want to make something. I will worry about any tax later. So I buy a share 100 dollars and the stock goes down 99 dollars. I think ok, that hurts but I can fix that by buying another 100 for a dollar each then for what ever reason I decide to sell 1 of my dollar shares. I put in that I want to sell 1 share for a dollar...guess which share they sell for me?

[miguelberetta]

Fifo has worked like a ponzi scheme for my personal portfolio. I use 0% credit cards every year and put everything on them while shoving my income into my portfolio, then paying off the card before the 0% expires.

So if I shove 3k in my portfolio today and the market drops tomorrow and need to withdraw 3k to pay off the card. I'm selling old money from 5 years ago that has already made a profit, while giving my new money in the back of the line time to compound