The best part about investing is making a profit. For some investors, this is the result of having made a few mistakes along the way.

When investors earn money they are subject to capital gains taxes, which are usually 15%. While this is a low rate of taxation relative to many people's income tax rates, it is still worth counter-balancing if past investments that are sure losers are available to be sold.

What are Bad Investments?

A bad investment is one where an entity was overpaid for. While a good investor wants to make money when he buys for a great price, that is not the situation with this kind of investment.

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