Quote from: exstasie on Today at 05:40:54 PM

Quote from: jerry0 on Today at 04:55:11 PM

I never done trading so curious on this. Also don't have the money to trade as it would be for small amounts so I don't think I could make much. Is that true or false? You need a lot of money to start if you want to make enough trading for a living right?

Yes. You need significant capital to make large enough trades to make a living off of. If you've only got $20 in capital, the idea of making a living from it is crazy.

Not only that, but a professional trader needs to hedge against downswings and drawdowns, periods where they under perform vs. their expected profitability or lose money. That usually means having a cushion of several months or better yet a years worth of living expenses saved. You need enough cushion that you are psychologically fit for trading (not emotional) and not forcing trades because you are desperate to make money. Not having enough cushion in the bank is very dangerous for someone who depends on their trading income.

Quote from: jerry0 on Today at 04:55:11 PM

Let say you want to make around 50k a year for someone in the US trading As im sure lot of US ppl know, if you trade short term, you have to pay like 35% on your short term gains.

That's only near the very top tax brackets, if you're making $200K+ a year. You pay your ordinary tax rate on short term gains. For some people, that means 10%, not 35%.

Quote from: jerry0 on Today at 04:55:11 PM

So basically in these transactions... the trader made 50,000 usd... but pays 5125 usd in fees right? So net profit is 44875 usd? So say that is the only transaction this person did all year with trading, they pay tax on short term for 15706 usd on their profits... so they make 29169 usd right?

If so, there tons of ppl doing this? Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?

Trading isn't easy. It is not like printing money. A lot of those traders will end up losing money. Most of them, in fact.

Are you from the US?

If so, you say thats only the highest tax bracket percentage... I dont think you are correct here. Aren't all short term profits doesn't matter the amt taxed at that rate though? Im pretty certain it is?

Well if you buy btc only like in my example and never sell it unless its higher than your bought price... then you don't lose right?