Recently a friend of mine who is full time employed and has a good salary asked me a tax question which I am not sure I gave him the right response so if anyone who has a better response, I would appreciate it. He has a full time 100K job and he is also trading a lot. About10 trade on average per day. He is also getting about 30K to 60K per year from day trading. He asked me wehther he can claim himslef as a trader so he can write off some of the expenses for tax purposes. I told him since his income from trading is less than his regular income, he cannot do it and he might get audited. My response was based on the info that I had from reading "The new trader tax solution" book. Is my answer correct? He might have a home run a year and his profit from trading might surpass his regular income so he cannot predict his income from investment at the start of the year.