Hi rim,

I'm in Alberta and I use tax loss selling as a useful tool to reduce my tax burden. I think there will be a substantial amount of tax loss selling before new year.

If you sell a stock for a tax loss then I think the rules are that you are not allowed to buy back the same stock for 30 days. Every year I sell one or two stocks for a tax loss. However they tend to be stocks where the story has not worked out (last year I sold Zarlink for a loss). The danger of course of tax loss selling is that the stock can bounce pretty quickly after the new year.

Of course you could always sell part of a holding for a tax loss.

On your other point. I used to lose sleep worrying over the markets especially during the dot com bust. Nowadays I just see this as part of the cycle of the stock market. Yes it's painfull and yes it's a real bad one, but 'good' stocks will turn around (like Points). If you look carefully what is happening there are hints at a little optimism already appearing out there.

The best way around the stress of waiting for a turnaround is to throw yourself into something else. I play soccer (badly) but while I'm being beaten up it takes my mind off this current meltdown.

Remember the only time you lose money on a stock is when you sell it at a loss. A paper loss (like a paper profit) is not a loss (or profit) until it is realised.

Good luck,

Pete