Technically you can't write off any losses where you have bought the same stock or similar stock back within 30 days...so if you are trading a stock every day, then you can't write any of the losses off?
https://www.elitetrader.com/et/threads/actual-data-supporting-no-use-of-stop-losses.379487/ Don't need to handle losses. Because some people trade without STOPs.
Your stop losses are all illegal according to the tax rules if you re-enter the position...so all those incremental losses cannot be tallied up. Yet another win for averaging down.
Dude, quit making up your own definitions. Wash sale has NOTHING TO DO with stop loss. I dunno about Canadian tax code, but here in the US the wash sale rule applies if you buy back the same stock, no matter what the damn price is, within 30 days (before or after) selling it at a loss. Not only stocks, but AFAIK it applies to bonds, mutual funds, ETFs, and even some options. And if a wash sale does occur, you CANNOT deduct that loss on your current tax return.
i think you can focus on producing "making money" or you can focus on preservation of what you have but it's impossible to do both very well. so pick one and do it well.
Right now I seem to be focused on blowing up my account . Anyway, I'm just pointing out that if trading a stock daily or weekly by getting stopped out, and then re-entering...then according to the tax law you will not be able to write off any losses because all of those losses will be considered superficial. A superficial loss occurs when you dispose of capital property for a loss and you, or a person affiliated with you, buys or has a right to buy the same or identical property during the period starting 30 calendar days before and ending 30 calendar days after the sale.
You can't report the pnl as long term capital gains. It must be reported as ordinary income, unless you're trading through a structure. This is why a lot of retail spec is done through futures and options, since they have a special 1256 designation.
in the US people who trade like that do an section 475 MTM status where you just pay taxes on end of year net gain. Futures contracts also offset gains and losses equally