I don’t get the concept of spending all day trading trying to game the market. Seems like a recipe for disaster and an accounting mess. I bet he’d otherwise be playing slots for the adrenaline rush.
The article does not clarify the point. Any loss on a wash sale is added to the basis of that stock if next purchased in 30 days. I suspect the trader has a ton of arithmetic to do following each stock purchased and sold, but he will not have an $800K gain. The fact he did not know about the wash sale rule at all is totally on him.
I’ve got a friend at work who lost many thousands day trading last year. You’ve got to be a certain kind of special to lose money in the stock market in 2020.
That makes sense, but I’ve not heard of it happening. I have at least one friend who used to make some $ playing online poker. If you know the odds pretty well, you can make $ because lots of amateurs don’t know what they’re doing.
True, but you can bet on sports from the comfort of where ever you are. I opened a Draft Kings account for my kid in December, he started with $500 and is up a couple grand. When he cashes out we’ll have to deal with the taxes.
Yep, some people see it as easy money because they have no idea what they’re doing, headlines about Game Stop didn’t help. My kid put $3,500 in a stock account in September and has doubled it. He doesn’t day trade but will make a few hundred on a stock over a few weeks then move on to the next one.
My son likes to bet $5-10 on parlays and longshots, he’s been doing pretty well with those. He also takes advantage of bonuses and other gimmicks they offer. My kid is a numbers guy and has a pretty good understanding of the odds, he does it mostly for fun.