The Daytrading & Swingtrading Thread

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Re: The Daytrading & Swingtrading Thread

Post by Dudsy »

A1Stocktrader wrote:wow, that was fun, held my overnight hod x $3.84, sold it today at the open for $3.92, went nicely with my hnd lucky trade yesterday $3.52 / $3.59, good for a +3.967 % roi in less than 24 hours.
FYI, if you are calculating ROI, you can't simply sum up the ROI's of individual trades.
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Re: The Daytrading & Swingtrading Thread

Post by A1Stocktrader »

Dudsy wrote:
A1Stocktrader wrote:wow, that was fun, held my overnight hod x $3.84, sold it today at the open for $3.92, went nicely with my hnd lucky trade yesterday $3.52 / $3.59, good for a +3.967 % roi in less than 24 hours.
FYI, if you are calculating ROI, you can't simply sum up the ROI's of individual trades.
huh, cost vs sell = roi regardless if individual or total, the above it total for the two trades. glta.
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Re: The Daytrading & Swingtrading Thread

Post by like_to_retire »

A1Stocktrader wrote:huh, cost vs sell = roi regardless if individual or total, the above it total for the two trades. glta.
I think it does matter whether it's individual or total.

If you make a bunch of trades and want an ROI you can't just add the ROI from each investment.

An example.

I make two investments and close them out at the end of the day.

I first invest $100 and make $5. My ROI is 5% for that trade. No problem there.

Then I invest $1000 and make $5. My ROI is 0.5% for that trade. No problem there.

If you add the ROI for the two trades, you would get 5.5% ROI for the day, but that's incorrect.

The actual ROI is 0.91% for the day.

The simple formula is :

ROI = (Net Profit / Cost of Investment) x 100

So ($10 / $1100) x 100 = 0.0909% ROI

I'm sure you know this though.

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Re: The Daytrading & Swingtrading Thread

Post by A1Stocktrader »

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Re: The Daytrading & Swingtrading Thread

Post by Norbert Schlenker »

That tapes out to +44.7% in the month of August. Of course, there are gap days, but maybe you were on vacation or in cash or just forgot to report. Can you show any evidence that your account increased in value by anything like that in the month of August?
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Re: The Daytrading & Swingtrading Thread

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Re: The Daytrading & Swingtrading Thread

Post by Norbert Schlenker »

A1Stocktrader wrote:end of conversation, thank you.
Extraordinary claims require extraordinary evidence. Unverifiable numbers are not evidence, never mind extraordinary evidence.
Anymore such questions will be ignored.
That won't be the only thing ignored.
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Re: The Daytrading & Swingtrading Thread

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Re: The Daytrading & Swingtrading Thread

Post by StuBee »

A1Stocktrader wrote:Norbert, you know better than that, such is between my Chartered Accountant and I, end of conversation, thank you.
A1stocktrader, you know better than that! By answering in such a way you are discrediting yourself!! (Though I have not been posting, it does not mean that I have not been watching :wink: )

I do not day trade. However, I was under the impression that day trading was considered a business and therefore all gains are fully taxed (i.e. gains are not considered capital gains and therefore not eligible for favorable tax treatment).

I am more interested in how you are faring longer term. My 1 yr, 3 yr, 5 yr, and 10 yr IRR are 8%, 7.5%, 4.5%, and 7.5% respectively. How are you doing?

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Re: The Daytrading & Swingtrading Thread

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Re: The Daytrading & Swingtrading Thread

Post by like_to_retire »

A1Stocktrader wrote:I know better, I trade only long / short on margin, all good, pay my taxes based upon only 50 % of capital gains, love it,
Interesting, I was also under the impression that gains from day trading were treated as income and not capital gains, and so claiming a tax advantage was disallowed.

It's spelled out fairly clear on the TaxTips web site here.

How are you able to sidestep this tax rule as you're clearly a daytrader?

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Re: The Daytrading & Swingtrading Thread

Post by StuBee »

I am doing fine! Thank you very much for asking.

Though my ROI's are not impressive, they are getting me where I want to go. Afterall, when all is said and done it is only the purpose of the thing (what Aristotle called the "final cause") that really counts. I doubt that daytrading would get me to that place. I also doubt that it can get anyone to that place. Though unlikely, I hope (for your sake) that you are an exception. Unfortunately, your vagueness prevents me from taking your claims seriously. At the same time, I realize that this is a daytrading thread and that no one here has an obligation to demonstrate credibility.

I would advise you in future to keep a careful score of your IRR taking into account new money in as well as any withdrawals. You may be surprised what you find out when you learn exactly how you are doing.

Mind you, anything is possible and perhaps you really are "wildly" beating the market. But, up until now, I have no real reason to believe so. At least you are having fun!

Good luck!

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Re: The Daytrading & Swingtrading Thread

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Re: The Daytrading & Swingtrading Thread

Post by adrian2 »

A1Stocktrader wrote:with that, no point posting here.
Framing this for posterity.
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Re: The Daytrading & Swingtrading Thread

Post by A1Stocktrader »

You do that Adrian, I have read many of your posts, many of which carry zero substance, many are condescending ignorance in nature and full of pompous assumptions on your part, good grief, pity it is that you have nothing positive to contribute to this forum, what a wast of time and broadband for all, including yourself.
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Re: The Daytrading & Swingtrading Thread

Post by adrian2 »

A1Stocktrader wrote:My advice is get a Chartered Accountant to look after all of your year end paper work and taxes
You have this illusion that if you pay a CA he can wave a wand and make your taxes smaller.
If CRA finds out that you have been day trading, they will reassess you for more taxes and penalties, and your beloved CA will wash his hands by pointing out that it is your responsibility for whatever information you provide and all he did was a compilation of the data given by you.

If you're evading taxes, after all the warnings you were given, at least have the common sense and lay low, not boast every day about how much money you're making.
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Re: The Daytrading & Swingtrading Thread

Post by deaddog »

adrian2 wrote:
A1Stocktrader wrote:My advice is get a Chartered Accountant to look after all of your year end paper work and taxes
You have this illusion that if you pay a CA he can wave a wand and make your taxes smaller.
If CRA finds out that you have been day trading, they will reassess you for more taxes and penalties, and your beloved CA will wash his hands by pointing out that it is your responsibility for whatever information you provide and all he did was a compilation of the data given by you.

If you're evading taxes, after all the warnings you were given, at least have the common sense and lay low, not boast every day about how much money you're making.
My experience has been that the CA will err on the side of caution. Mine warned me that I should not trade as often as it might throw up a red flag to the CRA.

Adrian you trade daily how do you handle this situation? There is an election you can take I believe.
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Re: The Daytrading & Swingtrading Thread

Post by StuBee »

Good Heavens!!!

Did A1stocktrader self-destruct???

He seems to have edited himself into oblivion... :shock:
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Re: The Daytrading & Swingtrading Thread

Post by ModeratorM »

Several of A1Stocktrader's posts from the past few days have been removed. He removed several of his Friday posts for reasons unknown to us, and a moderator removed two posts made Saturday which attacked forum members and violated forum rules. This type of behaviour will not be tolerated at the forum. Have a great day, all! - Moderator M
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Re: The Daytrading & Swingtrading Thread

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deaddog wrote:Adrian you trade daily how do you handle this situation? There is an election you can take I believe.
I did take that election, correct.
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Re: The Daytrading & Swingtrading Thread

Post by JaydoubleU »

Mine warned me that I should not trade as often as it might throw up a red flag to the CRA.
How often is too often?
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Re: The Daytrading & Swingtrading Thread

Post by deaddog »

I was making at least one round trip a day.
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Re: The Daytrading & Swingtrading Thread

Post by JaydoubleU »

I was making at least one round trip a day.
So 300+ or so trades / year will attract the Evil Eye of Mordor, you figure?

How about 50 trades a year?
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Re: The Daytrading & Swingtrading Thread

Post by deaddog »

JaydoubleU wrote:
So 300+ or so trades / year will attract the Evil Eye of Mordor, you figure?

How about 50 trades a year?
I don't know. One a week isn't all that many day trades.

There are advantages to both claiming as income and capital gains.

Most of my day trades now are swing trades that went against me right off the bat. I'm taking the small loss and I'm certainly not generating any income.
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Re: The Daytrading & Swingtrading Thread

Post by Mike Schimek »

You have this illusion that if you pay a CA he can wave a wand and make your taxes smaller.
If CRA finds out that you have been day trading, they will reassess you for more taxes and penalties, and your beloved CA will wash his hands by pointing out that it is your responsibility for whatever information you provide and all he did was a compilation of the data given by you.
Doesn't he just have to file the election form to ensure that his daytrading is counted as capital gains/losses?
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