BBT, Yes I would great to become a BBT Ambassador. 1. Member since March 2018, Live 3 months 2. I believe I am active in the forums/chat 3. Confident in speaking with strangers via email 4. I am willing to share my email. 5. Yes confident in answering questions about profitability and other questions.

It’s been two weeks since my last update. In short, I have been dealing with an over trading issue which I could not beat. So I tried a self-prescribed “boot camp” last month which last 8 torturous trading days where I hit max loss on 5 of those days, but it did temporarily control my over trading. I then had a solid week of trading, controlling myself to good setups. But it didn’t last. Monday (1/28/19) of the second post boot camp week I felt a bit tired and gave myself a rating of 4 out of 10 on my “well being” score I do every trading morning. A 4 is the lowest score I will still allow myself to trade, though reduced size. It didn’t go well and took some bad setups. The week continued to get worse. By Thursday I was back to my old ways and way over traded and hit max loss. But luckily that was the last day of the month, so I decided to start fresh on February 1st. The “boot camp” was just enough to get me in the right direction but I need continuous drills to keep me from going back to my old ways. So I set up a new training program. Week 1: 1 trade a day maximum. After I take the only allowable trade I need to stay focused on charts, without making trades, until 10am (EST). I can switch to SIM if needed, but preferably just stay mentally engaged. Reread Daily Trading Coach. This was the 3rd read. 1st one when I started the SIM, the second read was the first week live. Chose a nontrading discipline and work to improve it. Increase well being lower limit to 4.5. Set -3R max loss limit by broker Results of week 1 (actually 6 days) went well. Traded well with no trades I would rate as low quality (bad) trades. I rated myself a 4 for well being on Tuesday and used SIM instead, trading 3 high quality trades. I definitely got more out of it on the 3rd read of the Daily Trading Coach then the previous two. One issue (if it can be really called an issue), is I got a bit too lucky with the setups. The 2min ORB which was my bread and butter for my first 2 months live, which went away for a month (about one good setup per week), came back with a vengeance last week. All 6 days I found a good setups somewhere from 1min to 3min and thus had 6 good trades. Only one stop out and that was at break even. Due to that good luck I didn’t really test myself very much psychologically. The drain on our psyche obviously comes from losses. So I will continue the 1 trade per day max next week as well. Results of the last 6 days of live trades: Good Trades Neutral Trades Bad Trades 1st week Feb 4 1 0 I defined how I rate good/neutral/bad trade in a previous post. I also made 3 good sim trades on Tuesday. I also made the transition from Etrade Pro to DAS last week, which went OK.

I admired the other traders that post their trades on the BBT site. I have been trying to get the courage to start. If I am embarrassed to post the trade, I shouldn’t have taken it. So I want that consequence on my shoulder. So I promised myself when I switched from Etrade-pro back to DAS, which is much easier to journal, I would post my trades. I have been live for 3 months now. First week live on DAS. 1st week of February Risk: $25/trade Max allowable trades per day: only 1. I am having an over trading issue that I am trying to resolve. So I have a self-imposed limit of one trade per day. Friday 2/1/19 Well being score of 5.5/10. My one allowable trade was with FB. I do apologize for the chart. This was my last trade with Etrade-Pro which doesn't automatically show entrance/exits. The tech level I drew at 167.51 was too weak to act on (that is why I drew it in yellow - stronger ones are orange) so I let it go by. After the 2min candle the price sat for awhile, until it started to move and I went long. I took a partial at 1R. Price just missed the second partial at 2R by a few pennies. The 5th 1min candle spooked me and I exited. Monday 2/4/19: I gave myself a “well being” score of 4/10, which is below allowable limit to trade live. So I traded on SIM. Made 3 good trades, but since they were on the sim I won’t journal them here. Tuesday 2/5/19 Well being score of 5/10. My one allowable trade was with AAPL. A very bullish 2min candle was created and I went long as it passed the recent premarket high. I didn’t have a strong technical level for the entry or exit so I cut my shares in half (so only a ~$12 risk). Got lucky on the last exit. Wednesday 2/6/19 Well being score of 5/10. My one allowable trade was with MU. Stock made a nice ABCD inside the 5min. I was going to wait for the 5min candle to finish, but when it made a new high on increased volume I went long at 9:33am. It fizzled quickly and I got all out when it looked like it was reversing. Thursday 2/7/19 Well being score of 5.5/10. My one allowable trade was with TWTR. I made a mistake on this one. But, it didn’t cost me much to learn a good lesson. I have learned to be sloppy when zooming in on a chart not to look carefully at the tech levels because Etrade always lists the next level you drew on the edge of their chart. So you always know the next level with a quick glance. So I was careless when zooming in on TWTR and caught the 2nd tech level and not the first. The price dropped below the tech level I was going to short on, but I thought the risk/reward was so large I let the price make a new low of the day. Once that happen I shorted. Once the price dropped a little the real tech level appeared on my chart and I realized I trade now has a 1 to 1 risk/reward ratio. If I was aware of this level I would have shorted at the 31.1 level I drew where the risk/reward was OK or just not trade it. Usually, when I realize the risk/reward is wrong I get out of the trade. This usually occurs when you get a bad fill. But, since the price was moving in the right direction I waited for the 1st tech level to close the trade. It missed by a penny and retraced. Since this is not a real trade anymore, just one I am trying to get out, I stopped out at break even. Friday 2/8/19 Well being score of 6/10. My one allowable trade was with MU. The tech level I drew and the 1min VWAP coincided making it a strong tech level and I really like it when the 1min VWAP and 5min VWAP get a large separation. I took the trade at the 1min VWAP and made the 5min VWAP the first target. This trade had a very tight stop out level (just below 1min VWAP). I took the first partial at the 5min VWAP with the plan to take the next partial at the 2nd target (200MA). But, I got cold feet and made the 2nd partial in the middle of nowhere. Then all out a few cents below 200MA. It's interesting what a different perspective I get on my own trades when I post them like this. After what I thought was a good week trading and was reasonably happy after reading my journal entries, I now look at the these trades posted and I am not really proud of any of them. They look quite haphazard and not well thought out. The Friday trade with MU would be the closest, but not quite. Something for me to think about. Thanks for reading, Rob

Hello Everyone, I just finished three months of live trading this past Friday, and about two weeks before finishing I came to the realization that something had to change if I was going to make it through the learning curve. After reading “Trading in Zone” and watching Mark Douglas’s “How to Think Like a Professional Trader” on YouTube, I decided I would create a 20-trade sample set to work on three areas of my trading. (1) Thinking in probabilities (2) Discipline to not give into FOMO (3) Holding my winners longer I figured since this is basically testing out a theory presented in one of the recommended Psychology books, I would make the results public so everyone in the community can see it. The desired outcomes I am looking for at the end of the sample set are: (1) Getting away from thinking trade to trade, and start thinking in a series of trades (2) Taming FOMO, so I do not get over excited and enter a trade too early (3) Confirm my profit taking plan is profitable over a series of trades. All of my indicators, confirmations, and risk analysis that defines my edge is based on information obtained in Andrew’s book and the lifetime Webinars. Edge Defined Strategy: 15 Min ORB – I chose this strategy specifically to force myself to deal with FOMO each and every day. I will caution that my edge does not appear every day, so there will be days that I do not take a trade. While tracking 5 Min ORBs and 15 Min ORBs for the last three months (total of 165 Stocks), I was surprised to see that 15 Min ORBs that meet my criteria appear more frequently than 5 Min ORBs. The percentage of them working is almost the same. 5 Minute ORB Pullback Met Parameters - 52 of 164 Total trades within parameters that have worked - 41 of 52 (78%) 15 Minute ORB Pullback Met Parameters - 55 of 165 Total trades within parameters that have worked - 41 of 55 (74%) Stocks for Watchlist: I select up to three stocks to watch based on the following criteria % Change – Gapped at least 2% but not more than 10% Catalyst – Needs to have fundamental news of sort. Vol – >100,000 Float – High or Medium float (> 50 m) ATR - .50 to 2.00 Trading – Must be trading higher than normal volume Exchange – I prefer Nasdaq over NYSE Edge Criteria: I have three parts risk analysis, indicators, and confirmations Risk Analysis: 1:2 or Greater Indicators: Must meet 2 of 3 Trades within the ATR Small share size with high volume Has a direction upward or downward (higher highs, higher lows, lower highs, lower lows) Confirmations: Must meet 3 of 4 ORBO closes above VWAP/ORBD closes below VWAP No large wicks/candles (wick cannot be larger than body, candles body not larger than ½ ATR) Closes near VWAP (needs to be within $.30) Has a pullback prior to breaking the opening range (cannot go past planned stop) Profit Taking Plan: As I am with CMEG, I have found you have to be very selective on when to take profits otherwise you are giving the money you make back in commissions, so I developed strict criteria for taking profits. Plan A – 1/3 out at just a little above 1:1 (this allows me to be at break-even if the stock moves back to my entry point), all out at profit target (+/- $.03) Plan B – 1/3 out at just a little above 1:1, 1/2 at profit target, all out at technical level or my first out Plan C – 1/3 out at just a little above 1:1, 1/2 out near the profit target if stock stalls near it, all out at the profit target or my first out. Share Size: I am taking share size based on a fixed dollar amount. Thanks to KyleK29 & fjmocke for the hotkey setup. Daily Trading Goal: My daily trading goal is to trade only within my edge, stick to my profit taking plan, control my emotions, and be disciplined. If I meet these then it is a green day regardless of what my P/L says.

Bear Bull Traders is actively looking for current members that are willing to communicate with prospective members. We are calling this our ‘BBT Ambassadors’ program. What this entails is if a prospective member reaches out to us to learn more about our community and its members in a more intimate way, the BBT Ambassador will be willing to speak with this person (via email). The goal is to have current members discuss what they love about the Bear Bull Traders community and our education program. Understandably, there is trepidation when signing up for trading education and we want to offer prospective members as much confidence in our community and education as possible. By becoming a BBT Ambassador, you will represent the Bear Bull Traders community and brand. We expect that you will be willing to speak with prospective members in a positive tone and encourage them to consider joining our community. This isn’t a high-pressure, boiler room type sales tactic – simply instilling confidence in prospective members. I am sure as when you were considering a community to join, you would’ve felt a bit more confident speaking directly with a member of that community to get some true, honest feedback about the community and the education program. As a thank you to those that are willing to become a BBT Ambassador, we will reward you with any item you wish from our TeeSpring store. On top of this, we will offer you 10% from the sale of the membership and 20% off for the prospective member. This will be valid on Lifetime and Annual memberships. So if you are able to convince a prospective member to come aboard, they will get 20% off and you will receive 10% of the sale. There will be restrictions on this, such as the prospective member must maintain their membership for at least 30 days, but we will work on these finer details once we see the interest in this program. This is a no-pressure program either – if you feel that you are no longer comfortable speaking with prospective members, then you can certainly remove yourself from the program. This is also going to be a pilot program initially to see how many of our community members are willing to speak with prospective members. As mentioned above, you will be exposing your personal email to prospective members (not publicly), so you must be comfortable with this. All conversations will be moderated by our support team so that in the event you feel you have done all you can or no longer wish to speak with the prospective member, our support staff can step in and take over. If you feel this is something you would be willing to participate in, please reply to this forum post with the following: 1. How long have you been a member of the BBT community? 2. Are you active in the chatroom/forums? 3. Do you feel confident in speaking with a stranger via email? 4. Are you willing to share your email and name with a prospective member? 5. Are you confident in your trading to answer potential questions about profitability and other questions from the prospective member? Please understand that we will use our discretion when it comes to selecting members that we want to have participate in this program. We expect that you are an active member of the Bear Bull Traders community, you are in good standing and have a positive outlook on our community and the strategies we teach. When you reach out to us, we will take you into consideration and determine based on your activity in the community if you will be a good fit. Since this is a pilot program, we will be learning from this experience to see how it will benefit the Bear Bull Traders community and prospective members. We are really excited that this will allow us to continue to grow our community and bring in more members in a more organic fashion. If you have any questions, please feel free to reply to this post!

Hello BBT Family, I have been trading in SIM for 3 months and just signed up for another 3 months because I am not ready to go live – I have been feeling pretty confident lately and thinking this is not so hard – huge mistake. I have had the worst 2 days SIM trading!!! Monday I started off trading AMD – what a mistake, I got in long it went down – I sold and went short and it went up…I seriously kept doing this and I kept getting deeper in the hole….I ended the day crying and never wanting to trade again. But like a determined guerrilla I decided to trade today with small amounts – first trade 100 shares, made $50..I just should have stopped there but I thought you are doing so good go ahead – well I did for a long but it started to go the other way and I got out but what I didn’t know is that I hit 1000 instead of 100 and lost all my profit and now I was -20 and the day got really really worse. I am way to embarrassed to share my screens with you all – my trading was horrific. Soooo, I am reading Andrews first book over and I am going to rewatch all the classes. I might trade tomorrow but I think I need to chill. Thanks for letting me share this with you – it just feels better to get it out and move on. I will live to trade another day! rebecca

Hi Mike, Respect for your way of organizing and trading!! I'm now one month in sim and the only thing I do is jumping from one trade to another. I tell myself this is all for practicing. What stocks do work for me, which strategie, what hour of the day works best for me, etc etc. But I know there has to come a time that I have to go back to basics and get more organised. Your posts are a great reminder for me. I probably won't do things as extended as you do, but it might help me to take some steps in that direction. I also read Mark Douglas and it gives me confidence that I can survive the learning curve. Great to see that other traders (you for example) practice it in the live trading. Thanks for sharing, Mike!! Regards, Peter

I'm already, unofficially, doing this in my workplace. lol I might have a couple co-workers coming on-board in the near future. I'm finally going live in a couple weeks and would love to help out after getting some live experience under my belt. I'll check back later to see if you're still recruiting.

Week Six Recap Weekly stats o 2.5 R/R (Goal: above 3.0) [record: 2.7] o 87% (Goal: above 80%) [record: 93%] o -$125.41 (Goal: $250) [record: $20.80] Highlights o Good ABCD trade in MU on Wednesday o Going back to sim until I’m trading consistently again. Ongoing things to work on o Only taking ORBS, ABCD, MA Trends and Double Bottom/Tops o Getting good entries on solid setups

Ryan, I would love to become a BBT Ambassador! I joined the BBT community after reading Andrew's first book in March of 2018. I signed up for a trial membership on April 26, 2018, and became a lifetime member soon after. I am in the chatroom every trading day and am usually one of the first two or three members to log on. (It's a friendly competition unofficially! lol). I do feel that I have a gift for communication, am comfortable meeting new people, and I would be willing to share my name and email with prospective members. I will be four weeks "live" trading next week after spending 6 months practicing with the DAS simulator. Although my p/l is not green, I am doing a pretty good job of following the rules, learning everyday, and seeing progress. The journey of a day trader is one that involves constant learning and strategy evolution to become consistent. The stock market is not static but rather ever-changing, and as day traders, we must adapt to these changes and design new strategies that focus on psychology and risk control. I am very fortunate to have found this community to start my day trading career. I understand that day trading is not a game, losing money is no joke, and there is a high percentage of failure in this business. And, like all business ventures, there is the risk of losing all of your investment. The key to success is proper preparation, continuing to learn, and sticking to your trading plan. All the best, Stuart Kirksey

I just got a response from them regarding the VWAP pre-market bug. "Thanks for following up with us again. I apologize that we didn’t have a resolution for you. We are in the middle of replacing our chart engine with a new one. I will keep an eye out for this as we wrap up the transition in the next few weeks." I'll definitely follow up on this and provide updates here if/when it gets fixed.

6 Trade Limit From here on out, starting today. I am implementing a 6 trade limit. If you have seen any of my daily posts, you will know that I trade a lot. I have an overtrading problem. I have no problem jumping into a trade. I've had this problem from Day 1, and I never really got rid of it, except for a a few short weeks in October. Otherwise, I average about 15 trades a day since I went live in October. In October 2018, I had a 6 trade daily limit, and I actually stuck to my rules during that time period. When I first started in sim I would enter in and out of trades with very little hesitation ( a good thing for exiting, a bad thing for entering). I took a lot of trades, but the losses were small. I never broke stop loss and I never doubled down. I knew that I had no limits and I could easily get back into the trade. When I imposed the 6 trade limit, everything was fine for a week or so, until one trade where I didn't stop out because I knew I had a limited amount of trades. I didn't want to exit that trade and lose one of my trades for the day. (Terrible Mindset) I broke stop loss and I took a big loss on the trade. Shortly after, I started to break my stop loss more and more often. I never had this problem until I had the 6 trade limit. I started to break my stop loss and even worse I started to double down on my trades. Now I was breaking stop loss almost daily and doubling down on top of that. I took some big losses, which led me to remove the 6 trade limit. I thought if I didn't have the pressure of making every trade count, that I could easily exit a trade when it was time. It didn't help, I kept the bad habit, and I still occasionally have the bad habit of not stopping out when something drastically goes against me. I no longer double down, Das Risk Controls have helped me with that. I am also getting better at not breaking my stop loss, but I still have work to do. So as of yesterday, I don't really double down anymore, I do occasionally break stop loss, and I do overtrade. I have no interest in double down anymore and I don't see that being a problem in the future. I set up my Das Max trade loss to $80 with auto stop out. So If i double down on a trade, unless I time it perfectly, it will just get me closer to the $80 max stop. So there is no more incentive to double down. In order to address my overtrading problem, I am going back to a 6 trade daily limit. I had a lot of success with this, the first time around, I just created additional problems with it. I will be bringing the trade limit back and using this coin system that I created to help me with it. Every morning, I give myself 6 Golden Coins that represent trades. Everytime I take a trade, I have to deposit one of the coins into the box. When I am out of coins, I can no longer trade. I am down for the day, no matter what the time, and I shut it down. This put a more tangible feeling to my trades. I'm literally holding trades in my hand. And I'm always thinking "Do I want to spend a coin on this trade?". I have become more selective when I use the coins, and I do a pretty good job of only taking 1 or 2 trades per time period/strategy. I have used all my coins in the first 30-45 minutes before and I had to let other solid VWAP/Reversal moves go without me. Now, when I use the coins, I keep in mind that I want to save some for later on in the day, and generally take 1 or 2 each of ORBs, VWAP moves, Reversals. I have had great success using this method to cut down the number of trades that I take. Other problems have arisen that I am working on, but it is imperative that I cut down my trades and this will be the method that I use to do it. I am forced to be patient with my trades and my setups.

Nice Trade! You waited until the Price past all the strong Ma's on the 1, 5 and 15 minute chart, then caught an entry right on the Consolidation. That is a huge trade. Here is a video that really showed me how powerful Ma's are and the amazing potential we have when the price passes all of them.

Hi Romeo, Thanks so much for thinking of making this video I truly believe it will be helpful to members. Depending on the software you are using you can have the features to block your account number. What software are you using to record? Here is my recommendation: 1. You can hit the Status Bar by going to Tools and Uncheck Status Bar. This will hide your account number from the status bar 2. You can also hide the account number from the montage by right click on the montage and the layout config. In the layout config remove the Trade from the right column. This will hide the account number and the rest of the trade options. Once you finish the recording you can bring it back. Worse case you can send me the video and I can use Camtasia to block your account number. Feel free to email me with any questions. [email protected] Thanks. Carlos.

As we progress as traders, we all develop our own ways of managing risk, establishing our rules and deciding on what trades to take. As part of my decision process, I have fairly unique way in which I decide my trade sizing that fits with my philosophy. So, let's start there. Part of risk philosophy is that I always want to take the same dollar risk on every trade, no matter the stop loss I set (or the price of the stock). In order to manage this, I have set up a simple spreadsheet (as part of my trade log) that allows me to quickly calculate the number of shares I should take to maintain a consistent risk target. A couple of notes. First, I do not take a trade based on my account size, the price of the stock or the capital required. I focus solely on the amount I am risking on the trade. I believe this allows me to balance my risk across my trades for the day and not find myself with something like 4 winners and 1 loser, but negative on the day since the loser was huge. All trades should deliver the same value, and carry the same risk. Some other traders do much the same using a concept of "trading units" or "risk units". Second, the risk I take on a any trade will always be consistent for the day and be part of my daily trading risk profile. Once I set these values pre-market, I will not change it for the day. I decide the values based on my previous performance, how I am feeling on the day, what other distractions I may have, and how long I am trading that day. (These parts of my philosophy I can explain at another time.) Here's an example. Assume for the day I have decided upon a profit target of $500 with a daily max loss of $300 and per-trade max loss of $100. Below is a sample chart. Let's say I want to go long $SQ off of the ABCD pattern presented and I am looking at taking a maximum of $100 risk (ie- max loss) on the trade, as per my plan. The current price is $90.35. A reasonable, but tight(!), stop-loss would be $90.05 (the bottom of the ABCD candles), or $0.30. Using my spreadsheet (below), I have set for the day my max $100 loss in cell C2. I simply plug the $0.30 loss target into cell C3, and cell C4 tells me I can take 330 shares. No more, no less! To deviate from this number would skew both the risk and potential reward I could expect from the trade. The only way I can change the share size is to either tighten my stop-loss (increasing the chance it'll be hit, but decreasing how far the stock has to move before I take profit), or loosening my stop-loss (which has the opposite effect). But, no matter what I decide, once I enter the trade, I WILL stick to that stop-loss target. My sheet has auto-calculated the target profit as I will always look for a trade that, at a minimum, delivers a 2:1 risk-reward ratio. This does mean that I have to be confident that $SQ has the possibility of going up at least $0.60. If not, I will pass on the trade. ) I keep this spreadsheet open in a small window on a secondary PC all day. This way, all I have to do is punch in the loss target number into C3 and it'll give me the shares I can trade. While simple, I find this keeps me focused and consistent on my share sizes and ensures I do not take a huge dollar risk on one trade and a lower risk on another. Because, as we all know, it'll be the big one that usually ends up to loser! I hope this helps. If you have questions or comments, please post them! If you have other calculators, please share! Below is a link to the spreadsheet. Remember to set your expectation low! It is simple. The spreadsheet also has a daily p&l log, a calendar that will trade you winning and losing days, and a couple of other tabs in case you find them useful. https://drive.google.com/open?id=1qqTPpgUU2sDf-t8-yKso33KIwdfmL2rF Happy trading!

A couple of us in the chat have been discussing the issue of tax (planning/preparation/etc) as it relates to day trading in the U.S. (IRS). I've done quite a bit of research on the topic as I've been preparing my own taxes for the last decade+. 2018 will be the first year as a trader, so I had some studying to do. Before I get into the nuts & bolts, let me make the disclaimer: I'm not a professional. Please do your own research, consult a professional, etc. I'm not giving advice nor am I suggesting any one thing or another. The information below is solely based on what I've found through the IRS site, TurboTax, and other resources. First, the IRS considers you one of two: an investor or a trader. If you're a (Trader Tax Status), the law considers this to be a business. There are no clear and concise numbers as it relates to activity for what constitutes a trader vs an investor. The IRS, publication 429, states this: - You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation; - Your activity must be substantial; and - You must carry on the activity with continuity and regularity. Link to IRS Publication 429 So once it is established that you're a trader and not an investor, we look to what forms are necessary. Those appear to be: Form 1040, Schedule D (Capital Gains and Losses) Form 8949 (Sales and Other Dispostions of Capital Assets)...to break down all the transactions) Form 1040, Schedule C (Profit or Loss From Business (Sole Proprietorship)... since as a trader, the IRS considers your a business, you report your business expenses here. Many of us use or plan to use Interactive Brokers. If you're using TurboTax (online version), IB is not a partner of TurboTax. Therefore, all of the transactions won't directly upload into your filing. I've read that some people use software/service such as Gainskeeper or TradeLog. Gainskeeper is listed as a TurboTax partner. All of this is basically to complete Form 8949. With that said, I did also discover that the IRS grants exceptions to Form 8949. Form 8949 states this: Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions). This is good news. So assuming you get a 1099-B from your broker, it shows the appropriate information, and a copy is sent to the IRS, you can mark the checkboxes on 8949 for Part I, checkbox A, and Part II, checkbox D. Open the form in the link above and you'll see what I'm talking about. It appears you don't have to show all of the trades (hundreds or more) you completed during the year. Thank goodness, because that would be a HUGE pain in the ass. Here is the TurboTax AnswerXchange link I found that first showed me this: TurboTax AnswerXchange - question re: how to report Scroll to the top. One last important piece of information that I found is in regards to Self Employment tax. Many say that you'll owe SE tax to the IRS since you're in business for yourself (as a sole proprietor) as a trader. That's not the case. You have to have Earned Income in order to pay Self Employment tax. Capital gains is not Earned Income. Form 429 clearly states: Gains and losses from selling securities from being a trader aren't subject to self-employment tax. When you open the link above for Form 429, the "Traders" heading shows this. Finally, this was a helpful link for me. It contains a lot of information on this very topic. It also mentions the Section 475 Mark-to-Market election. Trader Tax Status - Green Trader Tax So that's what I've found so far. I was a bit discouraged at first, thinking I would have to use another vendor (e.g.: Gainskeeper, Tradelog, etc) to track the information, but it it appears I won't have to. Of course, there are CPAs that specialize in taxes for traders, so that may be something to consider. I'm not sure on that yet. First, I wanted to educate myself on how it's all done in case I decide to do it all myself. If others have experience with this, please feel free to chime in. Thanks!