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Short term stock trading?

Recently, with the volatility of the Market, I have begun to buy stocks and when they go up by few hundreds $, I sell, knowing that it will drop again, and repeat the process. The financials (C, JPM, WFC) are so predictable. I feel nervous about what I am doing. Do I just need to pay the taxes on the profits as if they were CD interests, short term Cap gains, and regular income? I do not want to be surprised when doing my taxes. But I'm having so much fun!!

9 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Your profits on short term stock trades (assets held less than 1 year) are short term capital gains. On the U.S. Individual Income Tax Return,

    Form 1040 you report Capital Gains and Losses on "Schedule D and Schedule D-1 (continuation sheet for Schedule D).

  • Anonymous
    4 years ago

    1

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  • Anonymous
    1 decade ago

    You are doing short term trading. All gains in this case are short term taxed at ordinary rates. Keep in mind that if you selll a stock and you lose money, you have to hold off on buying the same stock for 31 days to avoid wash sales.

    Source(s): I am an income tax professional
  • 1 decade ago

    Record each trade on Schedule D. Alternately you can attach a printout of all of your trades to Form 8453 and mail that in as a backup to your e-filed return which shows the net gain or loss only on Schedule D.

    Your net gain is taxed as ordinary income.

  • 1 decade ago

    They would be short term capital gains (net of losses) reported on Schedule D. Short term gains are taxed as ordinary income.

  • 5 years ago

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  • Anonymous
    7 years ago

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  • Anonymous
    6 years ago

    the best trading software http://tradingsolution.info/

    i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has great impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is important in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don't trade emotionally anymore.

    if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.

  • 1 decade ago

    If this is something that you plan to continue doing and doing a lot of it please contact me. I am an investment tax specialist and can give you some guidelines.

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