JRock

Someone here said that in a thread. I've never heard of that before. That sounds like it would keep anyone from ever day trading, so I don't believe it's true. The only thing I've heard of is that if you sell a stock within a year of when you bought it you get charged regular income tax, but if you hold it beyond a year's time you only get charged capital gains tax which is a much lower percentage.

Someone set out the true word please. That "penalty if buy and sell within a month" sounds like garbage. Why would anyone actively trade if that was the case?

Davediego

if its not an IRA account, you will incur a hefty tax penalty if you buy, sell, AND BUY AGAIN within 30 days. I can't tell you the exact amount

also there are different tax rates on selling for a gain depending on how long you held the stock. you pay the most if you sell under 30 days, next step down is 3 months, and then a year? don't hold me to those #'s, i cant remember what the periods are right now, i just know they exist
of course, you dont pay any tax on a loss, and your losses can be used to offset taxes on gains