woow ok. So I pretty much figured that most traders traded on NYSE or Nasdaq for the volume as TSX does not produce enough volume. As of now I am going to be working at home and working with a prop company that has a 15:1 ratio and will only take 30% (which seems fair compared to others) Im assuming I will be able to write off my computer, internet, and software fees of $250. Am I able to write off any schooling I would do that would relate to trading? Should I be starting to look for an accountent that specializes in investing?
I should also note that I will be starting with $6000 US which will give me $90,000 a day to work with.
You only take home 70%, plus you pay 250 per month. Talk about starting off with a negative return. You're already losing money before you get off the ground. When are people going to wake up to these prop shops. They just burn people out and make out like a bandit with commissions. I would scratch that idea and save up even if it takes a few years, until you're properly capitalized. Or else, you might as well say goodbye to your deposit and your dream. Just my thoughts.
Would it be good to negotiate something at the beggining in a the contract to state that after a certian amount of time/money that the % would change? Is this something any of you guys have done?
you will trade from at home with no one to learn from. you are concerned about taxes when you have no income. you say you can have 90000 in market exposure. for the 1st few months you shouldn't have more than 10000 in exposure because leverag will most likely hurt you as you lose in the beginning. negotiating time/money is a nonstarter. you are not a civil servant. time is meaningless. what money is there to negotiate? bottom line is that you know little about trading sounds like a recipe to lose all your money
Where did you get that advice? If you trade for a living it's all claimed as income, not cap gains. You can decuct any legitimate expense you incure to earn income. Office, computer, data feed expenses, etc. If you are an active full time trader and claiming it all as capital gains, good luck in an audit.
What kind of trading methodology will you be using? Do you have some proven results to fall back on? If the answer is no or you have any bit of indecision i'd walk away from this endeavor.
Okay well i didn't think he would be trading for a living off $6000, that it would be looked at as capital gains if this was a supplement of income. I understand that trading full-time is either a certain number of hours or trades performed, or maybe both? I was thinking from that perspective it's considered capital gains, which is 50% tax of the profit.
when I was refering to time/money I ment that I would say that after a certian amount of time that it would change from 70% to 80%. I swing trade now while working so I have the understanding of the market. The gentleman who is working with me on this will be helping me out as I go along as well as the beggining. I do understand that at the beggining I will not be using the full amount and will be taking it easy and building up. I will also be working part time at the beggining to pay the bills. (just in case)