When you take profit and pay capital gains tax, you lose buying power. How much lower must the price drop for you to buy back the same number of shares?
If you sell at a profit, you pay capital gains tax on the gain. This means you can't rebuy the same number of shares at your sell price — you've lost some buying power to the tax. The price needs to drop by a certain amount before you can buy back the exact same position. Until then, the person who held without selling is ahead of you.
Comparing someone who holds 100 shares vs someone who sells at €20.00 and rebuys.
