A while back I mentioned I was going to OTA. I graduated in March and have finally scraped my 5k together to start day trading. I have been on a realtime demo provided by my broker and have done pretty well in practice. So next week I'll try for real. I'll let ya'll know how it goes.
Take a look at TradersAccounting.com to get help on reducing your taxes as a trader. There is another CPA out of Dallas who also specializes in traders but I haven't spoke to him yet. There are ways to set yourself up to reduce the obligations, taxes and fees.
Just be careful that you do not trade 4 or more in and outs within a 5 day period. Daytraders are set at a $25000 minimum by the FED and your account will be frozen for 90 days if you make more trades than that. What are you planning on trading with $5K. You could do options or possibly futures, but I would imagine you would be limited to penny stocks.
Man you were doing that in the days of level I or less. That was an exciting time for trading but very hard to do. That is when the guy that taught my class got started also. He was on a floor in Ca one of the 1st day trading floors. They were visiting I believe it was Merrill Lynch and discovered several people just trading one company. I believe it was MSFT at the time. They got to know everything about MSFT and traded up and down all day if they had 3 strikes they quit for the day. Anyway they took this concept and combined it with their trading knowledge and formed a school. So many of there grads went to Charles Schwab and did well that Schwab bought them out. Then the layoffs a Schwab came so now they have their own school. I have found it to be a good safe way to start even though it is in an area that has been considered risky.
Today you can view the books in Nasdaq Total View and Level II. I was also taught trading strategies and let to live trade with their account. Just 10 shares but I made money.
My dad made 600% in less than a year short selling, then he lost it all, as well as all his savings, and eventually his marriage. Let me encourage you to be careful, and remember to limit your risk, and diversify, Don't do just one item, too risky.