Scalpers (and everyone else) - how do you deal with wash sales?

Discussion in 'Professional Trading' started by IronFist, Jan 10, 2007.

  1. I would assume that scalpers would run into this more than people that don't trade as frequently, but assuming you haven't checked "mark to market," doesn't this make your taxes impossible? I would assume that if you're making many trades per day they can't ALL go your way, so you're going to take a loss at least once, and then you're going to be affeted by the wash sale rule.

    Or do you just give it all to an accountant and let him sort it out?
  2. I could tell you something but I don't want to offer my illegal advice.
  3. Schaefer


    Try looking up, "Gainskeeper" :)

  4. Trade futures......all that matters for taxes is your net profit (or loss) at the end of the year.

    And there's even a tax rate advantage in trading futures vs. stocks.
  5. bighog

    bighog Guest


    Exactly. Stocks are your fathers old toys. Today the world is so much easier with futures. Futures are are trading, as in daytrading. Stocks are for positions, if you have more patience than waiting for the preachers daughter to come "out" then stocks will do. BUT, for REAL men and ladies that want action in the here and now, FUTURES are the way to fly.

    Ok, back on subject, futures are best for taxes, leverage, etc.

    Action Jackson types trade futures, moderns are in the new game. "Be there or be square" ..... :)

    PS, let me also say this: Scalping is NOT a daytrading plan. Scalping is more trouble than it is worth, it looks easy to start but one will soon learn the game of scalping is a fools game. Lots od commish for the house and 1 bad lapse in discipline (and we all have them) will wipe out a days profits and you wasted a perfect day. trade for the days swings. also in my opinion MOST range trading is also a bad plan. Same reasons. Good luck ... :cool:
  6. scalping is not all that BAD! dont give it a bad rap. I know plenty of scalpers who make upwards of 1 million dollars a year. I guess for most its not that great, but if you can put together a sweet trade commission and get rebates, then scalp, forget about it. You could make a killing everyday. :)