Any of you guys trade stocks/options/crypto for a living?

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  • CHCRandy

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    I use to just do occasional day trades and mostly swing trades, but I have been getting into day trading lately and find it really is a 15 hour a day job but the returns are incredible. Giving thought to making this more of my primary income and would like some thoughts from those who make their living that way. As of now all my trades are in Roth accounts, which gains are tax free but can't be touched until I am 59 1/2.

    If a guy starts trading out of a Roth.....will 35-40% be about the maximum tax owed? How do you keep track of all your trades?
     

    CampingJosh

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    My father did this for a couple years.

    After that, he decided that he made better money for less stress by going back to work. (He is a CPA, and he's worked as a controller for decades.)

    As was said further up the thread, day trading is a great way to turn a few million dollars into a million dollars.
     

    455 Beretta

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    Not sure what you mean about the max tax owed. Since you’re day trading it’ll be short term capital gain and taxed like income at whatever tax bracket you’re in.

    Not sure what you mean as far as how to keep track of all your trades. Whatever brokerage platform or website you use is how you track it, both for active trades as well as historical (i.e., basis for capital gains calc; but you’ll get a tax form at the end of the year with that info anyway).

    I’m considering the same thing, but trading options. I’m not too far from retirement, age and dollars-wise.
     

    CHCRandy

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    Not sure what you mean about the max tax owed. Since you’re day trading it’ll be short term capital gain and taxed like income at whatever tax bracket you’re in.

    Not sure what you mean as far as how to keep track of all your trades. Whatever brokerage platform or website you use is how you track it, both for active trades as well as historical (i.e., basis for capital gains calc; but you’ll get a tax form at the end of the year with that info anyway).

    I’m considering the same thing, but trading options. I’m not too far from retirement, age and dollars-wise.

    You and I sound similar. I am almost 52. I use TD Ameritrade. As far as max tax, is what I mean is I know there is short term cap tax.....which could go to near 40%, but then you have state taxes and is there self employment tax as well? I am just trying to figure how much of profit would need to be allowed for total tax obligation?

    Right now all my gains are tax free so I dont track my trades at all. TDA does send me tax papers but they mean nothing since I am trading in my Roth account. Does broker send form with profit only or total sales and you have to figure profit and or losses and your cost basis?

    I have just been doing so good, I hate to think about how much I am letting slip away by working and not trading. But I can't afford to wait 7-8 years for my next pay day. Trying to figure a way to trade for a living until I am old enough to start taking out of Roth.

    When I start thinking about giving 1/2 my profit to the State and Feds....it makes me think maybe I should just keep working and trading on days I don't have work/winter and swing trades. This summer has been the best I ever had. I have figured out options, and as you probably know to make 100% a week is kind of easy with them, I had one that paid 750% in a day. Then I had 2 different stocks I have been playing big that finally paid off....one paid me way over 1000% this week and the other nearly 500% in total over last 2 weeks.

    Maybe I should just chill out, let the adrenaline rush subside, and stick with my initial plan of working until I can tap the Roth or die....whichever comes first.
     

    rhino

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    I don't have what it takes to make money trading. I am well versed in how to lose money doing it, though.
     

    DCR

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    There are NO taxes involved with a Roth. It's not tax deferred like a regular IRA, it's tax exempt. The capital gains are also tax exempt. Trade your butt off in a Roth; that's what it's for.
    However, do not day trade at TDA, instead use Interactive Brokers. You have to wait 3 days for trades to clear at TDA. You can have leverage at Interactive Brokers. The commissions at IB are a lot lower.
     

    DCR

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    ....If a guy starts trading out of a Roth.....will 35-40% be about the maximum tax owed? How do you keep track of all your trades?
    OK I understand this now. You mean if you're trading, but not in a Roth, but in a taxable account. Your broker will keep track of your trades. In most cases the details can be downloaded @ EOY into a spreadsheet for your Schedule D or directly into TurboTax. The short term cap gain tax rate is usually capped at regular tax rates, so it's whatever your tax bracket is. Long term cap gains are lower, but it varies depending on who's in office.

    On another issue, it seems to me you'd want to keep track of all your trades, not for tax purposes, but as learning aids. Review your mistakes or at least identify what they are so you don't make them again. And probably keep metrics. Maybe you'll find out something about your trading that needs fixing, like don't trade during lunch, or you hold too long, or you would be better off selling at some resistance level, or never go short on the first of the month, the 10 minute chart is more profitable for you than any other time period, never hold for more than 6 bars, etc.
     

    bwframe

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    giphy.gif
     

    Spear Dane

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    Sep 4, 2015
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    I use to just do occasional day trades and mostly swing trades, but I have been getting into day trading lately and find it really is a 15 hour a day job but the returns are incredible. Giving thought to making this more of my primary income and would like some thoughts from those who make their living that way. As of now all my trades are in Roth accounts, which gains are tax free but can't be touched until I am 59 1/2.

    If a guy starts trading out of a Roth.....will 35-40% be about the maximum tax owed? How do you keep track of all your trades?

    Futures are much better vehicles and they have definite tax and leverage/liquidity advantages over other vehicles too. I don't mean pork bellies and orange juice. I mean bond and index futures. My major play is the ES... the E-mini S&P 500. Now I'm going to give you the best advice you will get in this thread. If you have a winning system that works for you right now, be VERY reluctant to give it up and keep in mind that the very brightest minds on planet earth aren't at NASA...they are on Wall Street.
     

    Jeepfanatic

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    Is anyone else buying CVS stock or at the very least keeping an eye on it? I am curious what it will do leading up to Q3 close and shortly after.
     

    JettaKnight

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    You and I sound similar. I am almost 52. I use TD Ameritrade. As far as max tax, is what I mean is I know there is short term cap tax.....which could go to near 40%, but then you have state taxes and is there self employment tax as well? I am just trying to figure how much of profit would need to be allowed for total tax obligation?

    Right now all my gains are tax free so I dont track my trades at all. TDA does send me tax papers but they mean nothing since I am trading in my Roth account. Does broker send form with profit only or total sales and you have to figure profit and or losses and your cost basis?

    I have just been doing so good, I hate to think about how much I am letting slip away by working and not trading. But I can't afford to wait 7-8 years for my next pay day. Trying to figure a way to trade for a living until I am old enough to start taking out of Roth.

    When I start thinking about giving 1/2 my profit to the State and Feds....it makes me think maybe I should just keep working and trading on days I don't have work/winter and swing trades. This summer has been the best I ever had. I have figured out options, and as you probably know to make 100% a week is kind of easy with them, I had one that paid 750% in a day. Then I had 2 different stocks I have been playing big that finally paid off....one paid me way over 1000% this week and the other nearly 500% in total over last 2 weeks.
    Of course, with your IRA, you're limited because you can't trade on the margin, so your investments have to be made with settled cash. But, like you know, the earning are completely tax free.


    To do it with a margin account to get income is different animal, and beyond my scope of tax law.

    Maybe I should just chill out, let the adrenaline rush subside, and stick with my initial plan of working until I can tap the Roth or die....whichever comes first.
    That would be my advice, but you do you. You'd probably be better off asking this question on an investor forum (e.g. Motley Foo), than a gun forum.
     

    BugI02

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    Jul 4, 2013
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    Columbus, OH
    You and I sound similar. I am almost 52. I use TD Ameritrade. As far as max tax, is what I mean is I know there is short term cap tax.....which could go to near 40%, but then you have state taxes and is there self employment tax as well? I am just trying to figure how much of profit would need to be allowed for total tax obligation?

    Right now all my gains are tax free so I dont track my trades at all. TDA does send me tax papers but they mean nothing since I am trading in my Roth account. Does broker send form with profit only or total sales and you have to figure profit and or losses and your cost basis?

    I have just been doing so good, I hate to think about how much I am letting slip away by working and not trading. But I can't afford to wait 7-8 years for my next pay day. Trying to figure a way to trade for a living until I am old enough to start taking out of Roth.

    When I start thinking about giving 1/2 my profit to the State and Feds....it makes me think maybe I should just keep working and trading on days I don't have work/winter and swing trades. This summer has been the best I ever had. I have figured out options, and as you probably know to make 100% a week is kind of easy with them, I had one that paid 750% in a day. Then I had 2 different stocks I have been playing big that finally paid off....one paid me way over 1000% this week and the other nearly 500% in total over last 2 weeks.

    Maybe I should just chill out, let the adrenaline rush subside, and stick with my initial plan of working until I can tap the Roth or die....whichever comes first.

    You don't seem to be mentioning any trades that lost money

    If you had none, my hat is off to you, sir

    If you had some, I would wonder why net-net wasn't mentioned

    Personally, I still believe slow and steady wins the race. How big a standard deviation in your account balance would you be comfortable with? That said, options are a valid way to make money around the edges of a sideways or down market I just would never bet the farm on them
     

    DCR

    Sharpshooter
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    Oct 6, 2009
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    ...............Personally, I still believe slow and steady wins the race. How big a standard deviation in your account balance would you be comfortable with? That said, options are a valid way to make money around the edges of a sideways or down market I just would never bet the farm on them
    excellent advice
     
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