Money Forum World

Travis13 · Joined: 08 Nov 2007 Posts: 2152

I am receiving Unemployment Insurance Benfit and I'm about to open an Day Trading Stock Account. Am I still?
I am now receiving Unemployment Insurance Benefit and I'm about to open an Day Trading Stock Account.that I purchase and Sell stock some number of times per day. For some reason, I'm expecting to earn some $ regulary.per month.

Does it think about as an Other Income????
Some people say its not because its an investment.

However, what I going to do isn't a lasting investment and there will be lot of purchase, sell transactions per day. I'll be expecting some thousands of dollars per month.

Am I still qualified to get unemployment benefits????

I am in California and..to open an stock trading account, I'll present my Social Security # and all the info.

Please advice. thanks.

Saundra Shelton · Joined: 08 Nov 2007 Posts: 2112

Your gains will be capital gains, filed on Schedule D. you may want to consult a tax professional. Early, not at the last minute.

If you really make thousands of dollars per month that will most likely disqualify you for unemployment benefits. Keep the unemployment office informed of your earning. That way you'll avoid an unpleasant surprise afterward.

As a day trader you'll need a margin account and $25,000.00 minimum balance. SEC rules. While you're on unemployment some maybe all of the mainline brokers will balk at giving you a margin account.

Before jumping into this, you may want to realize that majority day traders don't make money. The thousands of dollars per month you hope to make, is more probably to be a loss.