Day Trading while collecting unemployment?

[JSOP]

I was in NYC prop trading in the '90s and collected unemployment for a while. You are not a business unless you have a track record of being profitable. Essentially I was in a partnership that cost me $1500/month to learn the ropes. What I have learned amounted shit. We were supposed to scalp 1/8 and 1/4 pre decimalization, not the best business model for a trader. I found out later that the firm got huge rebates from the floor/clearing company and never gave us a dime. We were encouraged to trade a lot, "scalping" if you can call it that.

Yeah that was the big thing at the time. Those firms were popping up everywhere and charging thousands of dollars to teach you their "system" that they were touting as guaranteed to profit. I got pitched by them too, telling me that I would be able to make back my course fee in a few weeks no problem. I thought what they were charging was too high. I was collecting UI as well at the time and I was looking for a trading venue to allow me to make money not to fork over more money while I didn't even have a job. And besides I thought if I could really make back the money that fast, then why wouldn't you just teach me and let me trade right away? If it's that low of risk to me, it should be low risk to you too. Then why would you insist that I pay you first? The more I thought about it the more fishy it sounded to me, so I walked away.

I am so glad I did. The firm folded 2 years after.

 

[JSOP]

It could be problematic in Illinois. They require you to recertify every two weeks. It's fairly late in the year so your broker will file at yearend.
Do people misrepresent their status? Plus your previous employer will get a notification and an opportunity to contest the benefits. Plus you are required to look for work.

You can still look for work while trading. I did and it was no problem. Nobody said you can't do both at the same time. Hell people even trade while working.

 

[lindq]

Looking to potentially re-begin day trading while collecting unemployment.

I have day-traded in previous years, but stopped due to unfavorable market conditions.

It seems I can still collect UI benefits while day-trading so long as I don't file as a business [TTS]?
If that's the case, how can I make sure I'm not defined as a TTS?

Income from trading/investing is not considered "earned income", and will not impact your UI benefits.

When you file with the IRS, I would avoid using the term "trader", as you have not earned the designation via TTS, or filed for it.