Timeline for Compound interest and day trading
Current License: CC BY-SA 4.0
11 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Dec 16, 2019 at 18:36 | answer | added | not2qubit | timeline score: -4 | |
| Nov 13, 2019 at 21:49 | answer | added | Jake H. | timeline score: 1 | |
| Jul 25, 2018 at 14:16 | comment | added | Bob Baerker | There are some tax benefits (deductions) to Trader Tax Status (TTS) but only a small fraction of active traders qualify because they must trade substantial volume consistently over a long enough period of time. An issue of convenience is that you receive mark-to-market treatment and don't have any issue with wash sale violations. irs.gov/taxtopics/tc429 | |
| Jul 24, 2018 at 14:53 | comment | added | TomTom | @BobBaerker Actually besides the compounding - I think traders get special tax traatment in the US. Not totally sure - read it ona couple of books but I am not in the US so I do not care. Also - as trader you can MOVE. Once you make a million or two a year - live where you want ;) | |
| Jul 24, 2018 at 12:23 | comment | added | Bob Baerker | Start with $10k. Assuming it can be scaled up as you succeed (it can't) and you earn 1% per trading day (~252 trading days per year) and in a mere 5 years you're worth $2.7 trillion dollars. But you're now in the top US tax bracket of 37%. Geez, there goes about $800 billion of that. Oh wait. Over 90% of wannabe get rich day traders blow out their account in the first year. Of the remaining 10%, many lose and a few make some good money but no one does these numbers. EVER! OK, time to wake up from this dream. | |
| Jul 24, 2018 at 12:22 | answer | added | Daniel | timeline score: 2 | |
| Jul 24, 2018 at 10:03 | comment | added | TomTom | Actually 1% per day is the goal in my trading department. That said, the calculation is wrong because you run very fast into scalability issue.s I.e. you CAN make 1% on average, just you can not necessarily compound but pull the money out and look for new strategies. Strategies DO have limits how much money they can handle before returns go down. | |
| Jul 24, 2018 at 8:43 | comment | added | Daniel | May I ask how you came to those numbers? How/ why are you expecting any day trader would turn an average daily profit of 1%? | |
| Jul 24, 2018 at 7:31 | answer | added | TomTom | timeline score: 4 | |
| Jul 24, 2018 at 7:27 | answer | added | nanoman | timeline score: 4 | |
| Jul 24, 2018 at 6:39 | history | asked | chrislam5459 | CC BY-SA 4.0 |