How is this figured out? Does the government take tax out of every trade you do? Or do they take the tax out of what your entire capital is at the end of the year?
IOW if your portfolio started at say $10 000 and you won and lost a few trades, but your entire port folio ended up down by $2000, would you still pay tax on the trades that you profited from? Or do they only charge capital gains tax if your WHOLE capital has made a profit?