The What of Day Trading and Regular Stock Investing

Day trading is a form of employment where someone spends the bulk of their workday buying and selling stocks on the stock market for income. The day trader would make the money they use to pay for housing and food from the stock market, and they would spend all day at work making their trades. Day trader taxes are personal income taxes for a self-employed individual, and so there are ways to reduce the tax burden like recording business expenses. Day trading is when someone exclusively trades stocks for a living, and, as such, they have little to no other forms of income. Regular stock investing is when someone takes a part of their income and uses it to make investments on the stock market like savings for the investor. The frequent stock trader may make the occasional trade, and they will principally by using the sale of the stock to fund something they are saving for, like retirement. Taxes regular stock investors pay are only a part of their overall income that is taxable. They pay taxes on both their average income and the stock they sell. Regular stock investing is like using money someone has saved and applying it to make more money by investing in a business.