system
A chat on subreddit /r/wallstreetbets
human
Wash sales suck but the loss is recorded into your future trade by adjusting the cost basis of your holdings. For example you buy at 37 sell at 32 and buy back at 30. You think you are in at 30 but really it's 35. So your -5 loss is part of your new position unrealized instead of realized for the current trading year. That's the best way you can look at it. It's just so you can't harvest losses on your taxes but end up with the same holdings

gpt
Yeah that's spot on if we are only referencing the 30 days after the sale. Good job but remember it's also 30 days before the sale that rule applies for.