Stock Markets Exposed
Stock trading for fast money?
I am biginer in stock market but have fairy good knowledge from reading over the internet from different sites. I have fund of 7000 - 10000 for investment in stocks. I generally go to check on Yahoo, MSN, AGedwards, Motely fools site to know about company and picking stock for investment. My idea is to wait for particular stock to rise 2 - 3 dollar per share price and sale it and pick another stock. In a year my aim is to get 1000 - 2000 dollars as gain of my investment. My questions are - a) Am I doing the right thing or is there any better idea ? b) Generally I fill up 1040EZ form for IRS, but with this kind of stock trading and transaction of say 10 - 12 per year saling stock and making small gain at short interval. What kind of form I need to fill up for IRS ? c) For stock trading and educating self for filing IRS return - where should I get information on IRS publication ? As how to file return and what to consider for paying gain tax. d) I use H & R block software
Public Comments
- The key is to have a system that works for you. Mixing and matching or trying to do what others are doing usually leads to losses. If you like small caps, you may want to join our stock picking site: http://finance.groups.yahoo.com/group/TradingZoom/ - we discuss trading strategies and taxes/accounting for active traders periodically.
- Focus on percentages gained not dollar amounts, because you'll be buying and selling shares that cost varying amounts. The goal is to have your starting capital make the highest percentage gains possible. Don't be so concerned with the tax man, be more concerned with investing successfully. If you are not successful, you won't have to worry about the tax man at all. . . .
- a)If you are proficient go for it. I tried it years ago was 87% accurate on my trades and broke even. All it takes is one bad trade. I much prefer holding a stock a while. b) You file a Form 1040 and a schedule D. The big problem with trading stocks is maintaining meticulous records. c) get Pub 17 it covers all tax issues. In general: Securities held less than a year are taxed at you nominal tax rate. Securities held more than a year get a lower rate. I also would familiarize your understanding of the wash rule sales Good Luck.
- stock market but have fairy good knowledge from reading over the internet from different sites www.icicidirect.com www.nesindia.com www.bseindia.com
