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Selling Shares

When it comes to preparing your taxes it is important to remember how many and which shares you sold for that year. This will affect how much gain or loss you will report and whether that gain or loss is long–term or short–term. Some stock investors may own shares of stock in one company that was bought at different times and at different prices. When selling shares it is important to remember which shares you sold and today’s article gives the background and information surrounding the selling of shares on the stock market.

Selling shares as it pertains to tax laws is something that every investor should be familiar with. The tax law permits you to decide what stock shares you would like to sell but that choice must be made at the time of the sale. If are unsure of which specific stocks and shares you sold, or you don’t specify which shares are sold, then the law acts as if you sold the earliest shares that you bought. To avoid this, you must identify and specify shares to your stock broker.

When you sell some of your shares but not all of them, you must identify which shares you are selling. At the time of the transfer, you must specify this to your investment broker and you must receive a written confirmation of that specification from your broker, within a reasonable time frame. You must be very specific when identifying the shares that are to be sold. When buying shares and selling shares, you must be clear which shares you sold. Whether or not the broker actually understands your specification is not what matters. What matters is that you can prove to the IRS which shares you bought and sold if need be. The confirmation that you receive from the broker only needs to confirm your message. The broker is not required to confirm that they actually executed your order. You are only required to have written confirmation from your broker that you identified the stocks at the time of sale.

Some investors still hold stock certificates for the shares of stock that they own. Most investors will leave the certificates with their brokerage firm. When dealing with stock certificates and selling shares, you deliver the certificate that represents the shares that you are selling and that is all. You don’t have to identify those shares any further. If you are using a broker to identify the shares, then you still need to identify the shares that you are selling when you deliver the stock certificate to the broker. Otherwise, if you don’t use a brokerage firm then you just have to have a written record of the shares you sold.

Market Direction: Why do some investors make money in the markets while others are losing money? Why do some investors make money in a sideways market while other investors just throw up their hands? The difference comes from knowing what the market is doing. Candlestick analysis provides a clear picture of what is going on in investor sentiment. Whether that is a strong uptrend, downtrend, or sideways market, the candlestick investor will be able to assess that trend with much more conviction. Why can profits be made in a sideways market? Most investors cannot figure out what to do when the market is moving sideways. The first step for making profits is understanding the market 'is' moving sideways. That allows for some very simple techniques to continue to make profits.

Why does a price trend move in the manner that it does? Because of investor sentiment! Having this knowledge allows for better evaluations of what to do when the market is not providing a direction. What can be assumed when a trend continues to move in a particular direction? Investor sentiment has not changed. This can be easily extrapolated into analyzing which stocks are continuing to do well even though the market is moving sideways. Simply stated, investor sentiment may not change in a  particular stock/sector if there is no great change in the market direction in general. This may seem too simplistic but most market analysis usually involves over complication. Let the candlestick signals and patterns provide the analytical direction. The results have been proven over four centuries.

As can be seen in the Dow chart, investor sentiment has not changed from a sideways mode for the past three weeks. This becomes a benefit when analyzing the development of high profit patterns. As long as the market in general is not demonstrating a severe selling pressure, investor sentiment will continue to formulate the patterns that have occurred many times in the past. The Jayhook pattern and the Fry Pan Bottom pattern have produced extremely good results in these market conditions.



Patterns have a much higher probability of creating huge profits. They are recognized because of the reoccurring price movements that have produced strong historical results. The longer a major change does not occur in the general market atmosphere, the higher the probabilities that candlestick patterns will produce expected strong gains. For example, the Jayhook pattern has produced good profits in GMXR. This pattern has been able to fully develop because the overall market trends has not seen a severe reversal. Investor sentiment continues to build up confidence the longer the general markets don't create 'fear'. days or trends.


The major advantage candlestick signals provide is having the ability to accurately project the next trend and price target. The profitability of this information is derived from how it is used. Obviously, buying on margin is going to produce bigger returns than straight out stock positions. Option strategies will produce much bigger gains. Candlestick analysis puts the probabilities in your favor. Taking advantage of that information is not a difficult learning process.

Candlestick Option Trading Training - June 13 and 14th. $797.00 for an information filled weekend of learning. There are investors that have paid over $20,000 to option trading services to learn how to trade options correctly. The results? Most of those participants feel they know less about options now than when they started. What is the basis of successful investing? Keeping it simple! Candlestick analysis is the application of common sense investment principles that are being provided by a graphic form. Investor sentiment is what creates price movements. It is a very simple analysis. How you take advantage of that information should be just as simple. Keep in mind, simple does not mean unprofitable. Option trading strategies become very easy to apply when the analysis of a price move can be easily analyzed. The Candlestick Forum's Option  Training program concentrates on providing fast and uncomplicated investment strategies. This training not only educates investors in what to learn about options, it also will reveal what you do not need to learn.

Maximizing profits, while minimizing risk, should be the first function of any trading program. That philosophy should be applied to option trading strategies also. Your investment education should not include strategies that you would never use. Or strategies that will only be used once every three years when the right opportunity presents itself. Learn how to analyze where and when a price will move. Then apply the appropriate option strategy to take advantage of that information. Combining candlestick analysis with simple options strategies will produce very powerful returns. You will learn the definitions of the terminology thrown around in the option trading area. You will learn which terms are pertinent to making money. These sessions will be recorded. Click here for details on the upcoming Options Training Sessions.

Profitable Candlestick Training - June 20 and 21st, $797.00 You should have gathered from the Candlestick Forum free training sessions on Thursday nights, the main premise of candlestick analysis is applying simple common sense chart analysis to your investment program. The full understanding of how to use candlestick signals and patterns correctly comes from seeing and hearing the logic in a chronological order. You will gain a much better understanding of why candlestick signals work as accurately as they do. You will gain insights on how to think like a professional investor. The signals and patterns greatly reduce emotions in your investment decisions. Stephen Bigalow demonstrates how to use the information built into candlestick signals to apply effective entry and exit strategies. Also, you will learn the simple aspects applied to stoploss procedures using candlestick signals.

 Learn how to enter a trade at the optimal time. Learn how to take profits without the influence of your emotions. Learn how to utilize specific technical indicators with candlestick signals to dramatically improve buying and selling at the optimal times. This is not theoretical teaching. This is actual hands on trading techniques that are being used right now. Take advantage of the information provided in these training sessions to greatly improve the returns of your portfolio. This is not rocket science! This is common sense utilization of information that has been refined by Japanese rice traders over the past 400 years implemented with common sense computer generated indicators. This becomes an extremely powerful and profitable combination that most investors do not take the time to learn for themselves. Click here for details on the upcoming Profitable Candlestick Training Sessions.

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Good investing,

The Candlestick Forum Team


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