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RandallS

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Everything posted by RandallS

  1. I've never had more losses than when I started using stops when I wasn't doing well. It made things worse. What I really needed was a better system, which I took that season to work on to get back into profitability. Stops can be used wisely, but they shouldn't be used a substitute for having balls or using common sense. Sometimes the best opportunities are when you buy something and it gets even cheaper.
  2. The key here is being able to show it is a business and not a hobby. Here is the subsection in Irs Pub 550, page 76. It goes on to discuss how to file in such circumstances, and the need to make a mark-to-market election, etc.
  3. If trading is your main source of income (ie if it's your primary business and you run it as one), you don't pay self-employment taxes and your profits (after business expenses/deductions) are taxed on the same tax rate as anyone else. Pub 550: Special rules for securities traders.
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