Peanut's Potent Plethora of Profit

[peanuts]

What you want is here:


http://www.tedtesser.com/ted.html

awesome, thanks Dave.

[peanuts]

another addition

The latest addion to the "mentionables" list is TWLL

hey, I found another one today. After some more research, this just might replace one of my top five. Here it is:

CPX , and Yahoo! info

[peanuts]

The latest addion to the "mentionables" list is TWLL

This stock is having a great day!!!! And so am I

[Lyehopper]

Does anyone know if there are any tax implications that I need to be aware of for holding a day trading account? For several years now, I have been able to limit my day trades to 3 per week. Now, with a choppy market, I see a need to trade more often to get the same returns. I see day trading opportunities in several stocks throughout the week... but I've got the 3 round trips already and I have yet to be flagged as a daytrader in any of my accounts.

I am contemplating a day trade today, but I've got 3 from last week which still apply to my account. I do not want to be flagged as a daytrader if there are financial implications, tax-wise. I spoke with my broker regarding this and I am told that there are no extra fees for being flagged as a day trader.

just to let you know:
I have 3 trading accounts, and an IRA account which I don't mess with too often- 1 account is my ST account, where I day trade, hold margin, and play some other stocks. My MT and LT accounts are not on margin and I have set strict personal rules to trading within these accounts. The only account I will be day trading is my ST account with margin.

Thanks for any help you can offer me.

If you have over $25k in your "ST" account then just daytrade more actively right now. You need to show them that you are a daytrader before your account will be flagged as such. They will warn you that "so many more round trips" and they'll flag you as a daytrader.

Once flagged you just need to learn how to properly use your additional (margin) buying power. You can borrow down to 25% equity in your account with the daytrading buying power.... BUT you need to watch out not to get to many Reg "T" calls.... Your APEX Rep can explain the "Reg T's" and what triggers them better than I can (you should have been assigned a personal Rep by now imo).

I use www.gainskeeper.com to keep up with my trades, I import the data directly from Ameritrade into Gainskeeper and then edit as necessary.... This needs to be done daily and I also suggest you keep a written and DETAILED (notebook) log of your trades (very important).

[skiracer]

If the 3 trades from last week were each bought and sold separately in separate days and did not total more than the balance in your trading account then they should not label you as a pattern day trader. When you start making two or more trades in a day then they will label you as a "pattern daytrader". Then they will require you to keep a minimum balance of $25000 in that account even if the trades didn't total up to more than what you had in the account. I think the operative word is two or more trades in one day as opposed to account balance. Once you go over 2 trades per day then they automatically want $25000 in the account and you're labelled a "pattern daytrader" which does have tax implications. You should talk to your tax accountant about those ramifications.

[IIC]

I think the operative word is two or more trades in one day as opposed to account balance.

I've never heard of that Ski. I've made 2 dt's in one day in a tax account...and I never heard from anyone. I did not use unsettled funds though to do this.

I make 95%+ of my dt's in a margin cash account but sometimes I make one here and there in one of our tax accounts.

Here's my understanding in a nutshell:


Non-retirement accounts have two basic choices.

• Your first option is to provide sufficient cash in the account to support the desired level of trading.
• Your second option is to sign a margin agreement, which will allow you to trade without the 3 business day hold on sales proceeds.

A consideration with the option of signing a margin agreement would be the requirement by industry regulations, that if you do 4 roundtrips (A buy and a sell on the same day) in a five-day period, you will be considered a pattern day trader and will be required to maintain $25,000 minimum equity in the account.

Now, not that this applies to Peanut's...but it might apply to some who want to dt regularly but do not have over $25,000. Lets say you have $20,000...you could open up 10 accounts for $2,000 each or 2 accounts for $10,000 each...You sign margin agreements and you can make 3 dt's in each account in every 5 day period....At least I think you could...Doug(IIC)

[Rob]

Does anyone know if there are any tax implications that I need to be aware of for holding a day trading account?

Peanuts, I think this page might have some helpful info. or at least be a good place to start.

[skiracer]

That AEY position might be a better short at the moment after today. Seems to be selling off every chance they get into any show of strength. Another failure to hold after breaking through resistance. Didn't realize that they reported eps this afternoon at 1:30 pm. That was the culprit. Very brave Peanuts buying right into an earnings report. Not a bad one but not a great one. Can't knock you as I'm doing the same thing with HSOA. I'm holding thru earnings report. Did you know they were reporting today?

[skiracer]

I've never heard of that Ski. I've made 2 dt's in one day in a tax account...and I never heard from anyone. I did not use unsettled funds though to do this.

I make 95%+ of my dt's in a margin cash account but sometimes I make one here and there in one of our tax accounts.

Here's my understanding in a nutshell:


Non-retirement accounts have two basic choices.

• Your first option is to provide sufficient cash in the account to support the desired level of trading.
• Your second option is to sign a margin agreement, which will allow you to trade without the 3 business day hold on sales proceeds.

A consideration with the option of signing a margin agreement would be the requirement by industry regulations, that if you do 4 roundtrips (A buy and a sell on the same day) in a five-day period, you will be considered a pattern day trader and will be required to maintain $25,000 minimum equity in the account.

Now, not that this applies to Peanut's...but it might apply to some who want to dt regularly but do not have over $25,000. Lets say you have $20,000...you could open up 10 accounts for $2,000 each or 2 accounts for $10,000 each...You sign margin agreements and you can make 3 dt's in each account in every 5 day period....At least I think you could...Doug(IIC)

It actually happened to me a long time ago in an account I had with Muriel Siebert. It's been awhile but I know I had less than $25000 in the acct. at the time and did two trades in one day which totalled more than I had in the acct. balance. I didn't have margin at the time and they stopped me flat out and labelled me a "pattern daytrader". I had to either put up enough cash to raise the balance to at least $25000 an/or be subject to a 90 day restriction on trading more than twice in the same day. It was along time ago and I guess I don't really recall all the specifics exactly.

[IIC]

It actually happened to me a long time ago in an account I had with Muriel Siebert. It's been awhile but I know I had less than $25000 in the acct. at the time and did two trades in one day which totalled more than I had in the acct. balance. I didn't have margin at the time and they stopped me flat out and labelled me a "pattern daytrader". I had to either put up enough cash to raise the balance to at least $25000 an/or be subject to a 90 day restriction on trading more than twice in the same day. It was along time ago and I guess I don't really recall all the specifics exactly.

Oh...in your case you traded more than you had w/o margin. In my tax account cases that is not the case...That settles this case...However, I have sold a stock that was bot with unsettled funds in my wife's IRA...I mentioned that before...She got a stern email warning...but that was better than the loss she would've had if I didn't sell...Doug

[peanuts]

Peanuts, I think this page might have some helpful info. or at least be a good place to start.

That was very helpful. I am glad that I did not make that daytrade today. I have 3 round trips in the last five days in a margin account with an account balance of more than 25K. If I would have made one more daytrade, I would have to start reporting some of my gains for taxes as a trader. I figure that I will eventually get to that point, but I've got to do more research on the complete idea. It seems like a big step to take. Maybe it's the whole label as "pattern day trader"... sounds like an addiction Maybe it's a committment I'll have to consider a little more. Maybe I'm already there, but I just haven't been branded by the IRS.... yet

[peanuts]

That AEY position might be a better short at the moment after today. Seems to be selling off every chance they get into any show of strength.

I set 2 stops that have not been triggered, yet

Reaction is out of proportion, but I've got to accept it. The trade did not go my way. If I have to sell, I'll have no regrets... just a loss

[Lyehopper]

That was very helpful. I am glad that I did not make that daytrade today. I have 3 round trips in the last five days in a margin account with an account balance of more than 25K. If I would have made one more daytrade, I would have to start reporting some of my gains for taxes as a trader. I figure that I will eventually get to that point, but I've got to do more research on the complete idea. It seems like a big step to take. Maybe it's the whole label as "pattern day trader"... sounds like an addiction Maybe it's a committment I'll have to consider a little more. Maybe I'm already there, but I just haven't been branded by the IRS.... yet

The IRS dosen't tax you just because you are a "pattern daytrader" dude.... You have to actually make a profit to pay taxes Peanuts.... If you can indeed do it?.... That is a good thing!

[skiracer]

I set 2 stops that have not been triggered, yet

Reaction is out of proportion, but I've got to accept it. The trade did not go my way. If I have to sell, I'll have no regrets... just a loss

Down 9%. Where did you set those stops?

[IIC]

The IRS dosen't tax you just because you are a "pattern daytrader" dude.... You have to actually make a profit to pay taxes Peanuts.... If you can indeed do it?.... That is a good thing!

Peanuts...Being labeled a Pattern Day Trader is no big deal...I think you are confusing that label with being a professional trader as a business or whatever it's called...But if you are concerned, I'd have to go with Dave's standard suggestion...Call a professional for the details...Doug(IIC)