What defines a "Professional" trader (vs Non-Professional/Amateur)?
- Thread starter kmiklas
- Start date
Robert Morse
Sponsor
Miklas, in your order, Yes, No, Yes, Yes, No. IMO, a Professional Trader earns his primary income from trading. That can be his funds or the funds of others.
Thanks for the response, Robert.
So, imagine a person is the [stereo]-typical "day trader." They roll out of bed and go straight to their terminal in their pajamas, trade all day, and make enough profit to maintain their capial and pay their bills.. are they considered a "Professional?"
When I think of a Professional Trader, I think of someone on their second cup coffee by 6am, with at least one, if not several licenses. They can be found parked in front of Bloomberg Terminal in a corner office at J.P. Morgan in Manhattan, raking in profits with old money.
Robert Morse
Sponsor
A Professional of any type gets paid to do it or is self-employed and pays himself. I do not see this as any different. As with other businesses, there are different levels of scale.
Possibly one that qualifies for Trader Tax Status?
https://www.google.com/search?q=Trader+Tax+Status
https://www.google.com/search?q=Trader+Tax+Status
A professional is someone who does it for money - in this case someone like a trader in a prop, on a trade desk, or someone working for an investment firm. The smell test is it is your job.
An amateur is someone who does something for the love of it rather than for professional progress.
An amateur is someone who does something for the love of it rather than for professional progress.
MattZ
Sponsor
To me, this sounds more of a professional institutional salesman.