Not understanding the logic here....maybe you guys can help me out.?


Let's start at the beginning....there are 2 choices. If I trade stocks, I can make money or I can lose money.


If i think I will lose money.... the prudent person says "I would be foolish to trade in any account(tax advantaged or not) therefore I won't invest".


The other option is you think you will make money. Therefore, how much can I make after taxes.? Day trading will be short term capital gains. So, 35% federal(marginal) combined with 13% state(Cali) and 4% Obamacare tax....viola you get to keep less than 50% of your expected gains......unless you have it in a tax advantaged account


Not advising to do it.....but I can easily see there are reasons where it MIGHT be appropriate


Kinda like market orders....Lots of volume, 1 cent spread between bid/ask?....let her rip. Had that 1 cent price on a limit order cost me when trying to get a fill over a penny improvement. Then I chased it. There are certainly generalization that work, there are also exception to the rule.


Most advisors say to get risk averse as you near retirement....I contend that might be where you push it up(on the risk spectrum) if you are investing money that you don't logically envision ever needing.


Not trying to pick nits....only offering alternate "logic"