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As a day trader, how do I avoid the snowballing effect of wash sales?

I am a day trader and am in and out of the same security multiple times during the day. My think or swim profit/loss statement shows some profit (for example, $200) at the end of the day. But the gain/loss statement shows a loss of $2,000. That is the snowballing effect of the wash sale rule.

How do I avoid the snowballing effect of wash sales? How does a day trader make up for losses in case the first or even second sale is a loss? Is my trading style wrong? I need a CPA to calculate the wash sales. How can I find CPAs specialized for day traders? How do I quality as a mark to market trader to avoid wash sale loss calculations?

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January 2019

Hello, I do not provide tax advice, however, I can help you become a more profitable trader and create tax alpha. I would say your trading strategy needs to be changed. Wash sales are avoidable and to be blunt its bad investing practices. Rethink your strategy to avoid wash sales because obviously, it will not help your tax results. Consider new strategies such as complimenting your trades with options hedges to manage risk differently instead of trading the same security. For example, go long on a specific stock and purchase a put contract of lesser value to protect in case of any large downside movements. This way you can reap the rewards of gains and have the opportunity for writing off loses in symbiosis with your strategy.