I recently started trading this year, and for the most part have only invested in companies that I plan on keeping for a while. I understand the differences between short-term and long-term positions and how they are taxed ( for the most part anyway), but my question is how is day trading different from flipping?
I would really like to get more involved and start trading more often for the short term, in order to try and make money now instead of holding out for the longer plays. I don't want to buy off margin, I simply want to buy a stock I see a potential uptrend in and then sell it when I feel like it's gotten hot enough for me to make some money on. I've read that you are listed as a day trader when you buy and sell the same stock 3 times within one day, for 3 days within a rolling 5 day period. Would this be an accurate definition or would a closer definition be anyone who buys and sells any stock 3 or more times in a 5 day period?
Also, what would be the best strategy for short-term trading as far as taxes are concerned? is there a rule of thumb most people follow as far as how much you should make on any given stock before you sell ( such as only pulling out when you are up a 100% or more so you have more money in profit then you do taxes?).
Right now I have a full time job, and this would only be a hobby with some of my extra cash, so I'm just seeing if this is worth my time from a tax perspective, or if I should just stick to long positions. ( I live in the US, sorry for not making that clear earlier.)