Quote:
Originally Posted by PBarkley
I like the part in bold. I've been bitten before by the mentality that I can be my own day trader, and I'm lucky I didn't get completely hosed in the process. I've been quietly reading this thread ever since I've joined. It really is a treasure trove of information (especially for a 30 y/o like myself), and I thank you for that.
There is definitely opportunity to be had today for those with the cash, haha.
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Glad you are enjoying the thread!
Day trading is the fastest way to lose money I can think of. That's about the purest form of gambling. Then at the end of the year you owe the IRS taxes... and it raises your ordinary income (if done in a taxable account). Many people don't understand the tax rules of "wash sales" etc. The only way to do this is really have a great base of normal savings and investments... and then just take your "extra" money and either go to Vegas or day trade. LOL
Quickly -- a WASH SALE is where you trade the same stock -- within 30 days and have a gain -- then a loss -- The loss doesn't cancel out the gain - so you owe taxes on the gain even though you had a loss. It's a nasty rule that bites many people in a arse. That's a real basic explanation BTW.