You are correct to be concerned about showing a consistent loss on Schedule C, but as a bona-fide day trader you will have a straight-forward explanation should the IRS have questions.
The ideal approach is to make the "Mark-to-market election" - as a day-trader, your gains and losses would be short-term.
Here is the link to @bwa 's post: I am a day trader. How, exactly, do I report my investment income ($50,000 in losses, actually) into...
