I have some long term stock holdings (ranging 2-4 years old). I would like to buys some more of those stocks with the intention of selling them short term (days to weeks).
Right now, the tax strategy on my account is set to FIFO (first in, first out) by default. When I sell those short-term stocks, does it make sense to switch the tax strategy to LIFO (last in, first out). Those long term holdings have quite a bit capital gains, and I don't see a need to pay those capital gains now.
Related question: If I intend to do a lot more short-term buying/selling on top of my long-term holdings, does it make sense to set my account to LIFO by default?
An example, simply for illustration:
Oct 2011 Bought 50 AAPL @ $400.00 Oct 2013 Bought 20 AAPL @ $490.00 Future Sell 20 AAPL @ ??? <-- Best tax strategy?