Interesting question about day trading?

Question

i trade every day. i trade only one stock. so am i day trader or what.

i want to go to dubai and live there and do day trading from there. i have an account in tdameritrade and zecco and currently living and trading from america. in dubai the income tax is very low. so where do i pay the tax if i day trade in dubai. in america or dubai.

Answer 1

i'm not sure what the rules are you should look them up yourself.  i read if you make 2 round trip trades within a 48 hour period your broker will classify you as a day trader for tax purposes. it has to do with the length of time you hold onto stocks as opposed to the number of trades you make.  a real day trader sells all of their stocks before the market closes each day.

Answer 2

If you don't live in United States, then you don't pay Federal Income Tax to the U.S.

I can't answer as to what you need to do in Dubai, as I don't know the tax laws for the Emirates.

Answer 3

First of all, a day trader is anyone who buys and sells the same stock on the same day...that's the definition...pure and simple.

As far as taxes, you will owe capital gains taxes in America if you are trading on an American stock exchange such as the Dow Jones or NASDAQ.  It does not matter where you are located, you can invest from the North Pole...the IRS doesn't care.  If you are investing from an American stock exchange, you owe taxes in America.

The opposite is also true.  If you live in America and invest in foreign stocks, you will owe taxes in those countries.  It is credited from your American tax liability since you already paid taxes on that gain.  That is called a "foreign tax credit".  It is common for overseas mutual funds to report "foreign taxes paid" on a yearly basis for this purpose.

Answer 4

Beginner traders often fantasize or wonder about how some people are able to achieve tremendous profits by trading stocks just a few hours on a daily or weekly basis.

So going beyond the hype & the bells and whistles that a lot of the called "trading gurus" like to invoke, the real "secrets" of the stock market game are enclosed within the trading set ups and market signals you rely on to decide how to CHOOSE stocks, as well as WHEN to BUY & when to SELL them, or even when to SHORT SELL those that are poised for a profitable fall. So the clearer your set ups are, the faster you can spot a potentially profitable trading scenario and ACT ON IT reducing your risk.

Complicated technical systems and information overload can make you slow and confuse you right from the start, making you loose money instead of making your profits grow.

In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader. In order to succeed you will need to FOCUS on a set of simple trading strategies that you can implement without hesitation.

Fortunately some sites on the web do offer more effective and updated day trading methodologies. One of those sites that can show you how to take advantage of certain stocks on positive and negative momentum as well is http://www.MomentumStockPick.com

They focus on momentum stock trading strategies, that are practical and easier to apply than many other technical systems out there.

Stock trading doesn't have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency.