I don’t understand why people are so afraid of CRA and paying taxes on swing trading or day trading. If you have a $1,000+ profit sitting right in front of you, why wouldn’t you take it? You’re willing to wake up every day, go to a miserable 9 to 5 job, and give a huge chunk of your hard earned money to the government, but when it comes to making money in the stock market, suddenly everyone is terrified of paying taxes? 🤦♂️ STOP BEING AFRAID OF TAXES! Paying taxes on a profit means you made money. Obviously, you want to keep as much of it as legally possible, but paying taxes on a gain is better than sitting on an unrealized profit that could disappear tomorrow. Take me, for example. I could have lump-sum invested in $XEQT at $45.54 and watched my account go up thousands one week and down thousands the next, without actually locking in any profit. Or I could swing trade the volatility and walk away with $6,000 in realized profits. The market has been going sideways for months. A lot of people haven’t made much progress at all, while those who bought during the March dip had a better opportunity to get ahead. Meanwhile, swing traders have had opportunities to profit from the ups and downs. I’m not saying swing trading is easy or that every trade will be a winner. There are risks, and taxes are part of the game. But if you can consistently trade profitably, manage your risk, and still come out ahead after taxes, why wouldn’t you? The goal is to make money, not to avoid making money because you’re scared of the tax bill. Pay your taxes, keep your profits, learn from your trades, and keep building your wealth. 💰📈 LET’S MAKE SOME MONEY! ☝️🤑
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59 Comments
Regis
@mytranslator · 5dEdited
Same thing as when some people say "I don't want this salary increase because I'll pay more taxes, it's not worth it". That's a misunderstanding of the tax system. If the CRA asks me for money, it means I made even more money and already used all legal ways possible to shelter the gains. So I'm totally fine with that. 👍
Melina Thapa
@investingbestie · 5d
Not everyone has 100k sitting on their bank accounts to be trading like that. And with smaller amounts, it’s not worth it/ won’t make a difference. Better off investing longer term
Le Corb@lecorb · 5dEdited
I actually enjoy watching your trades and posts. An example of the inexperienced and uninformed at work. Wait till CRA deems your swing trading as income and not capital gains. And you haven’t calculated long term capital under appreciation as a result of a tax drag. Think of it this way. If 50% of your gains are subject to your marginal rate of 30% or likely more, this is like holding an ETF where you add a massive additional fee. For every $10,000 in profit, $5,000 is subject to $1,500 to $2,500 in taxes if the CRA doesn’t determine the trading is straight income in which case the tax is $3,000-$5,000.
Georges Nejem
@wealthbuilders · 5d
Capital gains are more tax efficient than employment income 🤑
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