How to set up my new Day Trading business?

Discussion in 'Taxes and Accounting' started by DavidTrader86, Jul 6, 2022.

  1. $30,000 aint enough to get started?
     
    #11     Jul 7, 2022
  2. SunTrader

    SunTrader

    To get started, sure. To last, no.

    I started and sold two businesses - 1 retail, 1 services. I wouldn't dream of starting another (this one trading anyway is my last) with less than $100k.
     
    #12     Jul 7, 2022
  3. Millionaire

    Millionaire

    Do you have more in reserve? To recharge your account if you have to?
     
    #13     Jul 7, 2022
  4. yes, i do
     
    #14     Jul 7, 2022
  5. 2rosy

    2rosy

    you never have to list every single trade on your taxes
     
    #15     Jul 7, 2022
  6. Millionaire

    Millionaire

    Well that should stop you going out of business due to an initial drawdown.

    You then need to make sure you have a valid edge that is profitable, otherwise you are doomed to fail.

    Assuming your edge is valid and you can be profitable. Stocks are not highly leveraged like futures or options. So high returns like 100% or 300% are harder to achieve with stocks.

    50% might be more realistic from stock trading. But thats only $15K a year. Even if you can make 100% it is only $30K..
     
    #16     Jul 7, 2022
  7. SunTrader

    SunTrader

    That is what I was thinking. How much can $30k really return in a year. If all goes well.
     
    #17     Jul 7, 2022
  8. Snuskpelle

    Snuskpelle

    $30k is fine if he has several years to compound the account without withdrawing anything. Otherwise, it's too little, barring some incredible strategy that lets him >5x in a year.
     
    #18     Jul 7, 2022
  9. as stated in a previous post, I also own an insurance agency, so the income is not an issue. My intent is to build up the account to the point where, at some point in the future I may be able to live off the income from daytrading.
     
    #19     Jul 7, 2022
  10. deaddog

    deaddog

    Why a business at this time? As a business won't data fee's etc be more expensive although they can be written off.

    What is your time line for being able to live off trading income?
     
    #20     Jul 7, 2022