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18 September 202002:06 PM - edited 18 September 202002:08 PM
I am quiet confused with the determination between an investor and a trader. It seems to be a greay area to me. Let's say in the past, I used to perform daytrades on ASX stocks. I did my research on the shares I traded, both technically and fundamentally. I looked into daily support and ceiling before going in. Some of the trades were event-driven, like merge/dividend news trading. Some others were speculation on start up companies. There were also plenty of blue chips stocks traded. I had a proper office setup at home and the commsec apps was also installed in my phone. I even set up an ABN for this to initiate the share trading as a proper business. But, I had never set up the company. By volume, within 6 months, I traded around 50 to 60 deals with initial capital of around $150,000. Despite all those, I still considered myself as an investor, not a trader yet. Am I correct here in considering myself as an investor?
Recently, I am thinking of starting an actual share trading business. As in, whatever I have done in the past, I would like to formalize them now, but the capital will be a lot smaller than it was initially, say $15,000 as a starting point and it will be a home office with a proper ABN and company set up. Will this suffice as an initial capital? and do I need to follow any other guidances, such as the trading volume, to regard myself as a trader? If I still held an open lot share from years ago, can this be carried forward into the share trading business as well? How do I work this out? Note: There had been no CGT event for it since the purchase date. If it is possible to carry forward the open lot share from back then, I presume going forward, I will need to work out trading stock values for it? and do I include gain/loss on that particular parcel as an assessable income?
Thank you before and apologies if there is any element that is not clear.