Investing strategies like tax-loss harvesting carries a certain amount of risk but when you use it with caution, it can be beneficial for your investments. You just need to avoid the “wash sale” effect when adopting tax-loss harvesting. When you sell a stock or any other form of investment asset and avoid repurchasing that asset or something similar to it at a similar price because it is a total waste of your time and it does not really change your portfolio composition or performance.