1. Robert Small is a dentist in the United States. Tired of looking in peoples mouths, he attends a Wade Cook seminar on Two Bad Years and Up We Go. He becomes fascinated with Cooks stock market strategies. Small begins to give up his dentistry practice, and within a year he is a full-time day trader on Wall Street. In 2020, Small has substantial ordinary income from the sale of his dental practice and suffers significant losses from his day trading. He consults you about deducting his losses and expenses from day trading against his ordinary income. What is your advice?

Cite what IRS regulations qualify or disqualify him to deduct the trading losses against his ordinary income from the sale of his dental practice.