without the 475(f) M-T-M election you are a day trader if you meet the criteria posted. There is no election. if audited the IRS will go over your trading activity to see if you qualify, The 475(f) election's only purpose is to change the accounting method for recognizing when and how trading gains/losses are recognized and reported. some traders make the election other don't.
a day trader without the 475(f) election only advantage is that trading expenses are deductible on Schedule C. Investors get no federal deduction at all. also, without the election, you have capital gains and losses and are subject to the wash sale rules. With 475 (f) your trading gains or losses are ordinary income or loss not subject to wash sales rules. With 475(f) at year-end, you adjust from cost/tax basis to market value picking up as income or loss the net unrealized gains and losses. With 475(f) at the beginning of the first year the difference between the market value on the last day of the previous year and their cost/tax basis is the 481a adjustment.
I really can't explain it any better so if you still do not understand please consult a tax pro
