Day traders enjoy talking about many things: stocks that are rising to new highs, patterns they're seeing, and big “green days” or profitable trading sessions they've had. That's nice, but the fact is you can only be proud of what you can keep after taxes. It is important to learn how to make a profit day trading, but a close second is learning how to keep that profit. Otherwise, you are doing all this work for the IRS.

I will not give you tax advice because this is not my line of work and I do not know you. But I can make this article worth a million dollars by giving you some things to consider when talking to your tax advisor.

When I made mine day trading challenge a few years ago, I wanted to see how far I could go starting with less than $600. I will say that my results have been far from typical, with the actual profit in my account now more than 10 million dollars, but I want to focus only on the first year. The opening balance was $583.15 and the ending balance was more than $335,000.

If I had received those profits then, I would have seen killers short term capital gains. That's when I realized I needed an accountant who knew the Internal Revenue Code like the back of his hand. I didn't want dodgy tax shelters, but I wanted any statutory tax relief I was entitled to. Here are three of the most powerful recommendations he made.

Connected: How I turned $583 into $10 million in day trading

1. “Ross, have you thought about moving to Puerto Rico?” I laughed, as you are probably doing inside right now. “Uh, no, I have a family and we're not really mobile right now.” But that wasn't always true for me, and it may not be true for you. In addition, to the benefits can be amazing.

If you live in Puerto Rico for six months and one day during the year, you may be considered a resident. You still retain your US citizenship because Puerto Rico is a US territory. Get this: Residents pay no short-term capital gains tax. Depending on your tax bracket, this could save you 10-37% on your taxes. Imagine finding a day trading strategy that can reliably increase your results by 10-37%. It's Puerto Rico.

2. “Ross, what do you know about backdoor IRA conversions?” I had no idea. This requires a little explanation. You need both a Traditional IRA and a Roth IRA. That is why:

With a traditional IRA, you can deduct a maximum of $7,000 per year. This number changes every year. The problem with a traditional IRA is that you have to pay taxes on any earnings you withdraw, which you can do without also paying a penalty if you're 59.5 or older. It can go up tax-deferred, but you still get hit on the other side.

Here is the amazing power of Roth IRA The great news is that you can take the money tax-free after you're 59.5! The bad news: The Roth currently has a maximum income limit of $161,000 per year. I had surpassed this in my first year of trading challenge.

Now for the “back conversion”. It's not some crazy tax theory, but a legal technique. See this. You can contribute $7,000 tax-deductible to a traditional IRA and convert all the funds in it to your Roth each year. I'm simplifying the rules, so check with your accountant, OK?

You might think, What's the big deal about converting $7,000 each year to a Roth so it can grow tax-free? Here's my big rant: At the time, the maximum contribution was $6,000, and I waited three years until I had about $18,000 in that account. Then, I started trading with him. It has grown to more than $6 million, tax-free. Sound like a lot? Consider this: Peter Thiel, a founder of PayPal, turned $2,000 in a Roth into more than $5 billion.

Connected: What is a Roth IRA and how to open a Roth IRA account

3. “Ross, have you traded on a business account?” This can be tricky, so definitely get help, but here's the kicker: If you design it right, you can deduct various business expenses like computers, software, subscriptions, and education expenses. You will receive a salary from the business.

But here's where it gets really interesting: You can set up a solo 401(k) similar to the standard type you know, except you're the only employee. You can defer up to $23,000 of your self-employment income into a 401(k), and it gets better: The company can also contribute up to 25% of your compensation, up to a total current maximum of $69,000 per year . If you have trading profits, you can grow your 401(k) by up to $69,000 a year. You can then invest those funds in the stock market, real estate or other assets.

Depending on the people you hang out with, they can sometimes make you feel bad for not paying a lot of taxes. “Pay your fair share,” they will say. I say my fair share is to pay every penny I am legally required to pay. Federal Judge Learned Hand wrote in 1935: “Every man may arrange his affairs so as to make his taxes as low as possible; he is not bound to choose that pattern which will best pay the Treasury ; there is not even a patriotic duty to raise taxes.”