Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Investing and taxes

Reply
ws
Frequent Contributor
Would you then have to open a trading account in name of the CC? Is that possible?
0 Kudos
Werner_1
Super Contributor
yes, its possible, i have both, private and cc.
0 Kudos
Not applicable
Yes, your CC can be traded in. Just know must have financial statements signed off once a year that can cost r2500 to r3500 at accountants if you. But it is well worth it, for the benefits.
0 Kudos
Not applicable
Question for you John, how much of your time do your day trading activities take? I don't like to allocate more than 1hr a day to my trades, so are there alternatives to 'lazy trading' or long term investments?
0 Kudos
john_1
Super Contributor
I trade full time but stop when I have made my daily bread or my system is on auto (stops are in place) but am always at my desk for the open and the gap close and from 4.30 to the close.
0 Kudos
ZerOgravity
Contributor
I can see the benefits of a CC but what happens if you also have a day job? Surely the income paid out from the CC will be added to your current annual salary and then you may have to pay additional tax? Double taxation?
0 Kudos
louisg
Super Contributor
0 Kudos
louisg
Super Contributor
John you refer to gearing as magic. Gearing is a double edged sword whereby it can amplify your gains but will also amplify your LOSSES. In the latter case your capital will disappear - JUST LIKE MAGIC. Do you EXCLUSIVELY live off your trading gains?
0 Kudos
john_1
Super Contributor
Is that the best you can do
0 Kudos
john_1
Super Contributor
The point here is I profit from volitlity. You assuming I profit from earnings as a trader and that is the mistake of your assumption.
0 Kudos
Shaun_Siddall
Super Contributor
Its all about getting your combined effective tax rate as low as possible through salary, interest divi's etc. If you are already at the max tax bracket then a salary from the CC would not make sense and all gains should be left in CC as your max effective tax rate as individual is alot higher than the cc.
0 Kudos
louisg
Super Contributor
John you're avoiding answering the question. Do you live exclusively from your trading profits? Do your trading profits cover ALL your living expenses? I'm just trying to find out if ANYONE who is a trader does make a living from short term trading.
0 Kudos
john_1
Super Contributor
A quote from my Jewish mentor..."pay as much tax as you possibly can using every legal means at your dispossal not to pay any."
0 Kudos
louisg
Super Contributor
Hmmmm ..... that's what I thought. Did you not go on your annual leave in May John? Sounds like you were employed at the time. As your Rabbi will also tell you - "KEEP YOUR DAY JOB".
0 Kudos
john_1
Super Contributor
LOL..I have never had annual leave in my life...If I only have 2 months off a year its a bad year..I am self employed always have been always will be. I have always made most of my money in the summer months..Hence me taking time off as soon as winter sets in.
0 Kudos
john_1
Super Contributor
Yes I live off my trading income..
0 Kudos
john_1
Super Contributor
Who do you work for LG as it is quite clear you are a 8-5 kind of guy.
0 Kudos
geordie1
Super Contributor
Lets take some heat out of this-nice deep breath-out with the hate and in with the love. Not sure why investors and traders like to prove that their approach is the 'best". Truth is anyone who can make money either by trading or investing should be respected. When you have done it to such an extent that you no longer have to work for someone else then I believe you have gained your financial freedom and then you can find out if you can really be happy. Investors and traders should live happily along side each other and respect and learn from their differing approaches-an investor can trade and a trader can invest-its not an exclusive club in either camp.
0 Kudos
john_1
Super Contributor
Sure..LG do you believe it is even possible to make a living as a trader?
0 Kudos
john_1
Super Contributor
LG please answer my question?
0 Kudos