I have come to understand what my next hurdle is with respect to trading...trading the plan consistantly.
My fake trading came to be once I understood how the trades were executed. I could perform the same trading without using real money and produce a result that would be very close to the actual trade had I actually pushed the buy or sell button at the time. I know that I have been doing a lot more faking in the last few months than I did when I started...in fact I did no fake trading when I started. Everything was based strictly on backtesting, formulating a plan of action to guide my trading, then jumping in with both feet. I learned a lot from this method. Ironically I did not lose a lot though. I've been told by many that I should have lost it all already based on how much trading that I did.
Now comes the final crunch. In order to capture the same sort of results that I was able to create while fake trading I need to do one thing different than what I am doing right now when it comes to my real trading.
Trade the plan, consistantly.
I need to take every ideal setup that appears.
The consistant returns will materialize once I start trading, for real, consistantly.
Today I had two losing fake trades of six but did not make any real trades. I used to have a rule about not trading on Fridays, that is a poor rule but I still followd it today. In those six trades I cleared $150 net, tax free...had I been pushing the order button instead of writing down the next to inside bids/asks.
Jeff.
Questrade, My direct access discount broker.
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Hi again!
ReplyDeleteI have been looking at many opinions on TFSAs, and I have read many specialists who believe that day trading inside a TFSA is NOT considered capital gain, and is therefore taxable.
Day trading gains are usually taxed as income, not capital gain.
Perhaps Questrade told you otherwise? For me, it seems that it's a grey area.
I will get in touch with the government this week and ask them directly. Right now I am not convinced that you will not be taxed on those gains. I'll let you know what I find.