Finding Funds + Taxes question

[ps2cho]

I have been studying the markets and many books for the past 3 months very meticulously and I feel close to ready to start paper trading.

I plan to do about 50 paper trades to obtain my R multiples and see how my position sizing is working out. I have my game plan laid out and my goals in sight (obtain a 2.5R multiple while trading live for my beginning months and then extend it based on what I achieve).

One of the last things is......finding the stocks....Where do you guys look for stocks? Memory? Random hit?

I plan to be a short term swing trader.

My second question is on taxation. Assuming I make a profit..... Is it a very high %? Is it based on income or is there a standard %? No need to get in depth as I can research it at a later date, but a ballpark figure would be nice if its possible.

Thanks

[MC]

Originally Posted by ps2cho

I have been studying the markets and many books for the past 3 months very meticulously and I feel close to ready to start paper trading.

I plan to do about 50 paper trades to obtain my R multiples and see how my position sizing is working out. I have my game plan laid out and my goals in sight (obtain a 2.5R multiple while trading live for my beginning months and then extend it based on what I achieve).

One of the last things is......finding the stocks....Where do you guys look for stocks? Memory? Random hit?

I plan to be a short term swing trader.

My second question is on taxation. Assuming I make a profit..... Is it a very high %? Is it based on income or is there a standard %? No need to get in depth as I can research it at a later date, but a ballpark figure would be nice if its possible.

Thanks

1st congrats on doing all the legwork first, it's very rare for anyone to do that. Sounds like you have the right ideas and should do well in the long run.

Taxes...fun stuff.
Tax on Stock Gains

Short answer is you're taxed at the % of whatever bracket you're income puts you in including the gains from trading. You of course can write off losses if that's the case...hopefully its not though.

[ps2cho]

Originally Posted by MC

1st congrats on doing all the legwork first, it's very rare for anyone to do that. Sounds like you have the right ideas and should do well in the long run.

Taxes...fun stuff.
Tax on Stock Gains

Short answer is you're taxed at the % of whatever bracket you're income puts you in including the gains from trading. You of course can write off losses if that's the case...hopefully its not though.

Looks like I will be in the 15% bracket....so that means my gains from stock (assuming I have any) are taxed 15%, correct? That is not 15% of my income right? That is 15% of my stock income. My regular income is another story right? Just clarifying.

Yes I am doing the legwork first because when I go live, I would prefer not to lose anything

In my Roth IRA account I invested foolishly in TXN and its dropped 30% and that is my lesson on exits!! It does not phase me much because seeing as its my Roth IRA, I have no reason to sell it...I'll just pit it out and wait til it goes back up. I'm in no hurry for that $400 worth of the stock.

[MC]

Originally Posted by ps2cho

Looks like I will be in the 15% bracket....so that means my gains from stock (assuming I have any) are taxed 15%, correct? That is not 15% of my income right? That is 15% of my stock income. My regular income is another story right? Just clarifying.

Yes I am doing the legwork first because when I go live, I would prefer not to lose anything

In my Roth IRA account I invested foolishly in TXN and its dropped 30% and that is my lesson on exits!! It does not phase me much because seeing as its my Roth IRA, I have no reason to sell it...I'll just pit it out and wait til it goes back up. I'm in no hurry for that $400 worth of the stock.

Taxes work like this..
All income is lumped together from work, investments, bank interest etc...
That's your gross income and what those brackets are based on. If you're in the 15% bracket then your overall gross income is taxed at 15%. Remember a check from work has taxes taken out already but investments don't.

[ps2cho]

Originally Posted by MC

Taxes work like this..
All income is lumped together from work, investments, bank interest etc...
That's your gross income and what those brackets are based on. If you're in the 15% bracket then your overall gross income is taxed at 15%. Remember a check from work has taxes taken out already but investments don't.

Ok gotcha.

What about my question of finding stocks? Do you just do random searches? Do you have a special tool or something that throws out stocks that may meet your criteria?

How should I "find" my winning stocks. I know how to play em...but how do I find them?

[MC]

Stock Screening Tools?

I usually hate when people say this, but try the search button.
I've answered alot of questions already and if you don't find you're answer or need further clarification fire away.

Stockfetcher is cheap, very customizable and has decent charts all rolled into one.