How do I know if I'm a day trader?

Question

The criteria is vague. What makes activity substantial?
How is continutiy and regularity determined? with an egg timer of a monthly calendar?
Exactly what is the typical holding period?
They say frequency and dollar amounts but they do not specify what they are.
The amount of time I devote to the activity? How do they know how much time I devote?
How do they determine if I'm a day trader? How do they make this judgement without specifiying the parameters?

http://www.irs.gov/taxtopics/tc429.html

Answer 1

I think you are asking if you qualify for Day Trader status with the IRS, correct? See, we can read minds after all. You never did state who "they" are, so you got some weird answers.

The way "they" decide your status is the precedent set in previous court cases.

Check out the links below

Answer 2

Your concern may or may no longer be come lower than the progression day commerce rules. in case to procure one hundred XYZ and then one hundred more desirable XYZ, bought 2 hundred XYZ, it truly is not any longer would not convey day commerce rules in result. in case your offered ABC and XYZ and purchased ABC and XYZ then you definately have made 4 trades and it would want to be day procuring and promoting. because the birder suggested there more desirable to it. He gave you a link examine the rules your self. NOW i'm a dealer and when you're thinking replacing into one, it this flat marketplace you're more desirable proper on the sidelines.... the position i'm immediately. I had a pal call me this morning all no longer to short JPC... seems between the speaking heads suggested it replaced into procuring and promoting down premarket with the help of basically about 15%.... my reaction so? then you definately might want to were short the day exceeded by. He basically referred to as crying.... it type of feels JPC opened at basically about the low of the day at 35.24 low for the day 35 presently procuring and promoting at 37.80 5 luckily my pal has a equipment deal of money... basically no longer as massive because it replaced into the day exceeded by. that's a touch late contained in the consultation to make certain it as short masking driving the cost up. What i actually ask your self is what does that say about the relative means contained in the retail marketplace.... did not imagine it had one LOL.

Answer 3

Hi --

A Day Trader is someone that buy a stock holds it for a short time ( a few minutes to a few hours) and sells it the same day

Hope this helps

Answer 4

If you have NO open trades at the end of the day.