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PureBytes Links
Trading Reference Links
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Hi all,
I was trader a couple of years and decided to go professional for many
reasons. As an ordinary investor, you are subject to the WASH SALE rule and
the real mess of trying to calculate all your stock trades at the end of the
tax season. When you trade 10-100 times a day, as I would, it is almost
impossible to track this without help.
As a professional, I had to take the Series 7 exam as a stockbroker to take
advantage of several key things:
1) WASH SALE rule exemption
2) Lower commission rates that are by the share (.5 to 3 cents a share /
depending on your volume)
3) (Profits - Losses) - Business Expenses = Total Profit/Loss (known as mark
to market accounting)
4) Increase leverage (10-1 margin instead of 2-1)
5) Direct platform trading
6) Schedule K-1 at the end of the tax year
7) Professional Status for the IRS classification
There are some disadvantages though to being a Register Rep., such as very,
very high costs for data feeds, quotes and exchange fees. Almost triple what
you would already pay now. But it does pay out, if you select the right firm
and trade frequently.
There are on a few firms that offer this. Basically Daytrading offices and
there remote trading programs offer this, such as Bright Trading,
Stocktrade.net, Daytrade.net, ect...
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