As title says ...I am asking for day traders... I am more concerned with seeing profits at the end of the day - rather than worrying about taxes So please suggest which is best cost basis method ..fifo lifo or hifo or low cost first out?
FIFO and LIFO in the context of your question, are INVENTORY accounting methods. A day trader is FLAT at the end of day... The account is either higher, lower, or even, compared to the beginning balance of the day after all commissions and fees. FIFO LIFO be damned as a day trader. Most brokers (and the IRS) default to FIFO. LIFO has a place when a holding period duration expands. At which time you might also consider a "specific shares" method.
Do you see money profits on a relatively consistent average basis daily? Less than 2% or .5% of day traders can truly say so. Most people have a ton of trades at the end of the year only to generate 2% on gambling and spending all of that time. They would be better off buying a CD or Bond that pays 5% or 4.20%
Most professional traders & algo systems prefer HIFO for active trading and tax minimization. FIFO is often the default for long-term investors and easy tax filing. LCFO is rare — usually only used for very specific tax strategies.