The penalty for day trading is that capital gains are taxed at higher income tax rates for assets held for less than 12 months. I suspect most day traders dont make a heck of a lot of money when all is said and done.
“The penalty for day trading is that capital gains are taxed at higher income tax rates for assets held for less than 12 months. I suspect most day traders dont make a heck of a lot of money when all is said and done.”
That’s not how the math works. Day traders can make a lot of money. They don’t pay the taxes as they make every trade.