When making frequent trades in a cash account are all profitable transactions added up and taxed? So if I deposit $1000 and double it ($2000 balance) in one transaction then lose the profit on another trade am I subject to taxes even though I'm back at my beginning balance ($1000)? Basically is my year end net profit or loss taxable or each individual trade?
It is the year end total net profit that is taxed, although if net losses occur, they are capped at $3000 and the remainder can be carried into next year unless you can file as a full time investor.
Except watch out for the "wash-sale rule". If the stock you lost money on was the same stock you made money on within 30 days, you would likely NOT be allowed to deduct the loss.
