If I daytrade stocks and make considerable profit...is there any profit on these taxes?? e.g. i bought shares in Apple and made 1.8% gain by only holding on to it for two hours, is there any tax applicable on it??or is it only if you buy a stock and hold on to it for a year (including dividends)ThanksI trade about 3 to 6 times a day (sometime different stocks also)

Of course you pay taxes on this. The only question is whether you are an "investor" and report your transactions on schedule D or if you are a "day trader" and use a combination of schedule D and C. If an investor holds a stock for longer than a year, then he pays LESS tax than if he held it for 1 hour. Either way, he still pays tax!

Proceeds are short term capital gains or losses. Don't forget to include your brokerage commissions.

Yes, you must pay taxes at your income-tax rate. If you hold stocks for more than a year, then you get a break -- you are taxed no more than 25%. But if you hold for less than a year, you are taxed on all profits, minus losses.

One good thing about making money in the stock market is that you do not have to pay Social Security taxes on the profits.

Yes, this would fall under a short term capital gain, unless you trade frequently enough to be defined as a "day trader" under IRS regulations.Be carefule about this distinction. Many people consider themselves traders, but do not actually fall under the IRS' definition. Based on your other question, where you stated that you have a cash account, you would most likely not be a day trader as defined by the IRS.Thus, your gain on AAPL is considered a short term capital gain and is taxed higher than a long term capital gain - assets held longer than one year.