Hello, im curios to know if i was to day trade stocks and make a few dollars each day how would tax treat me at the end of the year? example…..if i was to invest $3000 in company X and make 100 dollars (after brokers, investing company fees..) and reinvest the $3000, how would tax treat me? would they make me pay tax for the whole $3100 or just the money i made? I live in IL, can you please give me an estimate on what percentage of tax i would have to pay.
PS. Im aware on how people think this is extreamly dangerous, but im not compleatly sure why. Please inform me. Please also note that im not planing to invest lots of money. maybe 3 or 4 thousand dollars.
Thank you!
You get taxed only on your profits.
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