During 2017, Timothy Trader began engaging in frequent trading in Canadian securities, with the intention of making profits on sales of shares. Below is a summary of purchases and sales of shares that he made in 2018:

                                                Number            Cost              Sale price

Company                                of shares          per share            per share

Alogoma Steel                           1200               $ 8.47              $ 7.48

Bell Canada                               1500                 46.88                 55.75

Dominion Bridge                         800                 21.25                26.85

MacLean Hunter                        1900                   9.22                 11.37

Rio Algom Mines                     2300                 15.25                13.50

Slater Steel                                 1250                 10.00                   8.20

Required:

1. Explain the tax implications of the above transactions as they relate to Timothy's 2018 personal income tax return.    (Include the taxable amount of the effect!)

2. What advice would you give Timothy to help improve his tax situation?