No, unless you qualify to be considered a "Trader in Securities for 2019, then you should not amend your 2019 return to change to be considered a Trader in Securities instead of investor (includes day trader).
You have to qualify to be considered a "Trader in Securities" instead of an investor to be able to file with that as your occupation and you do not. Please refer to the requirements in IRS Publication 550.
Averaging one trade a day is not considered "substantial".
Continuity and with regularity would refer to it being a full time job and your main income. If you are a W-2 Employee, then depending on the amount of wages reported, you are probably considered working the full time job as your occupation.
Special rules apply if you are a trader in securities or commodities in the business of buying and selling securities or commodities for your own account. To be engaged in business as a trader in securities or commodities, you must meet all the following conditions per IRS Publication 550:
- You must seek to profit from daily market movements in the prices of securities or commodities and not from dividends, interest, or capital appreciation.
- Your activity must be substantial.
- You must carry on the activity with continuity and regularity.
The following facts and circumstances should be considered in determining if your activity is a securities or commodities trading business.
- Typical holding periods for securities or commodities bought and sold.
- The frequency and dollar amount of your trades during the year.
- The extent to which you pursue the activity to produce income for a livelihood.
- The amount of time you devote to the activity.
If your trading activities do not meet the above definition of a business, you are considered an investor, and not a trader. It does not matter whether you call yourself a trader or a “day trader.”
Since the IRS Publication 550 for Tax Year 2020 is not yet available, we will refer to the information in the 2019 IRS Publication 550 to answer your question.
Please refer to IRS Publication 550 for additional information:
IRS Publication 550
An investor in securities is limited to deducting a maximum $3000 capital loss against other income each year with the remainder being able to be carried over to future years.
