Day Trading: Facts, Fiction and Discussion
- TONYBRIG
- tele
- KirkL
- matttheduck
- tele
- RandeS
- TONYBRIG
- RandeS
- RandeS
- TONYBRIG
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» tele - Tony
I don't know whether the cab driver is lucky or not, but I'm the first to admit that I was. Also one of the reasons I stopped - I had the nagging suspicion that my luck wouldn't last. But agree there are those who do fine at this with analysis, discipline and backbone.-- posted by tele
» KirkL - Some people win the lottery too
Can't take isolated examples and draw massive conclusions. Some win and many lose? Even the owner of the day trading schools says it takes a good deal of capital to get up the learning curve. Maybe most quit before they learn to make money? You really need a scientific study before you can draw substantial conclusions.to say ALL fail, is clearly wrong.
to say Day Trading is easy to learn and anyone can do it is probably wrong.
Anyway, nobody has bought any of the three Day Trading books I put on my reading list so it looks like nobody here is interested anyway.
-- posted by KirkL
» matttheduck - money mag article
this month's money has an article on daytrading, as well as a "diary of a daytrader" notes from a guy who quit his job, scraped together $50 k and went at it. almost lost everything early on, but managed after 10 months to be up $20k. the question the article doesn't answer is "what did this guy live on in new york while he was making $2,000 a month (before taxes) as a daytrader? that's the aspect that's generally missing from the discussion. if you're putting food on the table with savings or in some other way than your daytrading, that ain't a fair test. i'd like to see a breakout of those who have recently quit their jobs, taken up daytrading and are living solely off their daytrading profits. i suspect this is a very, very small subset.-- posted by matttheduck
» RandeS - Day Trader tax status --
Day Trader tax status --First you have to meet the definition, which isn't in the Code. It's facts and circumstances, primarily based on old case law (sole means of livelihood, short-term holding period, trade for own account, etc., etc. -- check with tax advisor). If day trader status hurdle is met, then advantages include being able to use Sch C to report income and offset with expenses "above the line," as opposed to regular investment expenses which are subject to the 2% misc expense floor on Sch A. Also now available, as of TRA of 1997, is ability for traders to elect mark-to-market, which can be helpful in dealing with the wash sale rule. Check out the following site, if you're serious about it, they've got a Trader Tax Guide (I haven't seen it, so can't say whether it's any good, but you might want to check them out) --
-- posted by RandeS
» RandeS - One more advanatage of trader status -- although ordinary income
One more advanatage of trader status -- although ordinary income treatment (without regard to the normal $3000 limit against income for capital losses, if you do poorly), NO self-employment tax required, unlike "dealers."-- posted by RandeS
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