pass pass,
Paul, about day trading (while working on job): I'd love to do that too but before I try it, a few questions that I hope you can help
1) how easy it is to file the tax report every April (do you need to tell IRS about every trade)?
You do need to itemize each trade, and track how long you held if you have long term trades mixed in as well. Basically your short-term gains are taxed the same tax rate your wages are. If you pay 33%, your tax is 33%. If you have a lot of earnings from trading, it is time to estimate (next to impossible to do accuatly) trading income and make quaterly tax payments, otherwise you may be pennalized if you go over the previous years income (wages + trad ing gains) by 110%. If you make over 175K (married), then the 110% threashold is lowered to 100%. These are the general guidlenes, and I'm not sure about the 175K part. It is close though.
2) does your boss/client encourage you doing day trading on the side?
I focus my time on market open, 10:00 for 5-10 minutes, and check again at 10:30ish-11:00ish. I stay at the terminal during lunch (which I take at any time). Then I check back at 2:00 for a few minutes and 3:00 for a few minutes, and then before 4:00PM. On a quiet day I spend less time then most people do taking a smoke break. On other days it can be hectic, and if time allows I make a trade or two. Otherwise I loose out. This week has been bad, and I missed out on Tuesday big time. My job involves alot of network architecture work (Just finnished doing the ITU-T's network for the 1998 ITU-T convention being hosted by the USA in Minneapolis, MN!...fun stuff...I'll try to cozey up to these guys and get the skinny on 56K standard). I can take this work (and often do) home.
3) can you stay focused on work, say writing a RFC, when the stock goes wild?
At times, no. I have to exit, or put in conservative sell/buy limits. Others are gimme trades (like punnished on bad news stocks) that rebound into a sell limit quite nicely. These I could care less about.
Thanks in advance, I think day trading can be very exciting and profitable
It's fun, but a good bit of my porfolio is growing moss (while making money) like Tom and other longs. I trade ASND at the moment.
Regards...PRB |
