Traders can take advantage of National Small Business Week to learn, improve their business

As National Small Business Week continues, government agencies and small business organizations are holding conferences, seminars and other events across the country.Networking events, forums and more represent opportunities for small business owners and self-employed Americans to learn from experts and their peers, developing their businesses into more effective, efficient ones as a result, according to the Washington Post. For example, the Small Business Development Center at the University of Central Florida is holding workshops in Orlando to cover government-related small business opportunities, while The New York City Department of Small Business Services holds one which concerns marketing.Those in the day trading business may not be in need of marketing help, specifically, but events cover a variety of topics. It may be possible to learn a great deal from others with experience running a business at home, even if they work in different fields.Day traders have to deal with many of the same concerns as those in other businesses, such as identifying and purchasing any equipment, software and other tools they need and ensuring that their records are backed up properly. It may be helpful to have an off-site backup in the event a flood or fire occurs, since accidents and natural disasters can set a business back a great deal. Losing time may be particularly problematic in day trading, since the profession depends on up-to-date knowledge and quick action.

Work planning when working from home

While trading from home may seem like a perfect solution that will allow for plenty of time to spend with children while also getting your deals done, ParentingSquad reports that it's very important to set up boundaries between work and personal lives.
First of all, it's important that everyone in the family is aware of what's going on, so children know that there are times when parents shouldn't be disturbed for minor issues or play requests. While it's not necessary to completely ignore them all day, they shouldn't be interrupting work consistently.

One of the main ways to make running a business at home more feasible is to have a clear area devoted to work, and keep it separate from other parts of the house. Using a room divider - or having a trading area in a dedicated room - can help create boundaries that children can understand.

The site adds that it's important to stay on task while working from home. While it may seem tempting to complete chores such as laundry or other errands during the day, this will only prolong the time spent online at the end of the day.

However, it is also important to balance that work-oriented mindset with the idea of taking breaks throughout the day, like a person would if they were working at any office. Taking a short lunch and coffee break can help traders keep their minds fresh and avoid burnout during the day.

Taking tax deductions for a home-based business

When day trading from home, many of the same business tax deductions are available. Some people may already know about and use the home office deduction, which is available to Americans who have a room used exclusively as their main place of work.Having such an office can qualify a self-employed individual, small business owner or even employee for several benefits, although employees may receive the least advantage from the deduction. This tax break may apply to mortgage interest, rent, utility costs and possibly even insurance. How much each individual can save depends on the size of the office and how much of the home it takes up, measured by square footage.This deduction has the potential to be abused, so it is possible that taking it will increase the likelihood of coming under IRS scrutiny. As a result, some say it is unwise to claim it unless an accounting and tax firm or professional has evaluated the situation. It may also be possible to deduct some of the cost of home repairs or other projects localized to the office itself.Aside from the space itself and related expenses, a day trading business run from home can deduct the same sort of equipment run from an office. This includes office supplies such as paper, printer ink, and a computer for online stock trading.

Americans should adjust financial plans, preparatio​ns

The commonly-cited accounting tip that households should try to amass an emergency fund that amounts to three-to-six months' worth of living expenses may be obsolete, experts say.While many financial planners and professionals have referred to this rule of thumb in the past, some think it may no longer be enough, according to the Wall Street Journal. This is partly because many people, when saving in their rainy-day funds, fail to take into account higher prices for necessities like gas and food. Another common issue is that households may forget to update their plans after life-changing events such as marriage, buying a home or having a child. Such major changes of circumstance require financial adjustments as well, experts say, but people often forget to make them. For example, it is generally wise to update estate tax planning after such events.As far as planning an emergency fund goes, Americans may want to meet a goal of setting aside nine months' or even a year's worth of living expenses. The change is partly because unemployment is lasting longer, an average of 40 weeks. Additionally, homeowners may no longer be able to turn to a home-equity line of credit in emergencies, the news source notes, with tighter lending standards.People may also fail to take inflation into account when contributing to their own emergency funds, which could lead them to overestimate how far those savings will go in an emergency.

Tax cuts may not have the desired effect, expert warns

The argument that reducing taxes will be beneficial for employment and the economy is flawed, according to former policy advisor Bruce Bartlett.

While tax cuts may reduce unemployment under the proper circumstances by making it cheaper for employers to hire workers at a given salary level, such an approach is unlikely to be effective under current economic circumstances, Bartlett argues. The federal government has not implemented a major tax increase on workers since 1983, he states, while it has passed a variety of tax breaks including the recent making-work-pay tax credit and subsequent payroll tax cut.

This examination of history suggests that low employment is not currently being caused by and cannot be repaired by changes to tax policy, according to Bartlett. This analysis is supported by Congressional Budget Office reports that federal revenues currently account for a historically low percentage of GDP.

It is possible that one reason changes to the tax code have not been effective in stimulating employment growth is because so many provisions passed by lawmakers are temporary. Recent changes have often been designed to last as few as one or two years, and businesses may be reluctant or unwilling to make plans around such provisions when they could disappear so soon, Bartlett notes. In that case, tax reform may have to take a longer view to have any clear effect.

This suggests that tax cuts could lower revenue without significant benefit, if Bartlett is correct. Given the government's current financial situation, that could end up encouraging or even forcing lawmakers to adopt higher taxes in the long run, adding momentum to the pushes for higher capital gains taxes and other changes which negatively impact day traders.