Investing

Day trading in RRSP and TFSA

  • Last Updated:
  • Oct 29th, 2021 1:02 pm
Newbie
Sep 30, 2020
15 posts
5 upvotes
If it goes up the next day, by definition it is not day trading.
Also consider something like $DWAC spac. You own it at $10 and next day it goes to $150. It is a kind of windfall, unexpected profit. Should you force yourself to lose money by not taking such a gain when presented by the market?
Probably day trading means a pattern of activity of many inter and intra day trades numbering in the dozens or hundreds over a period of time.
Also while extremely unusual gains may be audited , if you have a justification for the trade or trades you will have an opportunity to make that argument.
Newbie
Oct 18, 2020
28 posts
34 upvotes
thescorpion3343 wrote: If it goes up the next day, by definition it is not day trading.
Also consider something like $DWAC spac. You own it at $10 and next day it goes to $150. It is a kind of windfall, unexpected profit. Should you force yourself to lose money by not taking such a gain when presented by the market?
Probably day trading means a pattern of activity of many inter and intra day trades numbering in the dozens or hundreds over a period of time.
Also while extremely unusual gains may be audited , if you have a justification for the trade or trades you will have an opportunity to make that argument.
Thank you for the response.
So I’m not doing anything wrong by purchasing stock one day and selling it a couple days later once it has (hopefully) gone up?
Sr. Member
May 2, 2019
590 posts
748 upvotes
Vancouver
Ciena888 wrote: Currently maximum lifetime contribution is 75,500 as of this year. If you had done really well and your TFSA account was at 150k and you withdrew it all last year ... Would you be eligible to contribute a maximum of 75.5K or 150k for this year?
You could contribute 156K then this year. 150K (withdrawals last year) + 6K (this year's new contribution space) + 0K (remaining unused contribution from last year, presumably none)
Sr. Member
May 2, 2019
590 posts
748 upvotes
Vancouver
TheGulag wrote: So I’m not doing anything wrong by purchasing stock one day and selling it a couple days later once it has (hopefully) gone up?
Depends. You didn't say what was the account type. In RRSP, daytrading or any frequent trading is ok. In TFSA, frequent trading is not ok. Nobody said it had to be daytrading specifically; if you buy with an intention to sell for a quick profit, that can be seen as running a business and not allowed in TFSA. Holding investment for a year is most likely fine. A week, most likely not fine. In between, depends. The rules are not well defined, but there was a court decision where something like 4 months holding period was called short.

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