Line between casual trading and day trading?

L

lipaktiv

New Member
Hey there,

I was wondering what the line between casual trading and day trading is?

I understand that if I am here on a F1 or H1-B visa, then I am here in the USA to primarily study (F1), or work for the sponsored company (H1-B).

Now the definition of day trading by the IRS for even just a pattern day trader is someone that does 3 same-day trades in a week.

Currently I'm an F1 student and I full-time study. However I am also interested in the stock markets because of my major, I trade for fun, but by no means spend enough time to turn it into anything close to full-time. At most I research the stock market and trade 5 hours a week. (I spend more time playing soccer than that!)

Let me put down some figures:
Last year (2005) I executed a trade (buy or sell) 34 times.
However I did the bulk of my trading (31 times) from September to December.

Am I breaking any laws then?! I understand what I'm here in the USA to do, and I do it very well. My grades are excellent. But I guess a hobby of mine is trading in the stock market.

I made sure I didn't trade enough to be flagged as a pattern day trader by the SEC definition. But am I still considered a casual trader?

Thank you very much for your kind attention.
 
I have another question on this topic.

Currently I am on H4. My wife and I have a concurrent I-140 and 485 filings under E1-OR category. We are expecting to receive EADs soon. I'd like to get engaged in day trading. My question is at what stage of the green card process can I start day trading?

I know that there is a distinction between passive/active investment for H visa holders. However, I assumed that once you have the EAD then you can engage in active investment or day trading? Is that true?

I've been searching the web but couldn't find any information on this issue. i'd appreciate if you direct me to any other web site.

thanks in advance.
 
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