I am a full time self employed and do daytrading during my holidays and time offs which is around 8 to 10 weeks a year. I do not claim a trader status. I am wondering if somebody can help me to answer these two questions. (1) can I deduct cost of books, monthly magazines and trading softwares under misc deductions. These two items have improved my investment income. (2) I lost money in 2000 and 2001, but I am positive this year, can I take this profit against losses for previous two years. I appreciate any help and comments.