The issue here will be resolved if one can define if his investment is 'investing' in nature or 'trading' in nature.

Nobody here could make an exact distinction between trading and investing. I don't blame you because I myself do not know. IRD are also very vague on this.

1. It's not about the number of trades you make, but it's about the duration you hold. The more cash in hand you have, the more trades in smaller amounts you could make. So, number of trades should not be the determinant to categorise you as an 'investor'. I used the word 'should not' because I am not sure what IRD/LHDN thinks.

2. We have to clearly define how long of a holding period of an investment for it to be classified as 'investing' and how long to be classified as 'trading. From what I heard, it's 3 months, not sure though. So, if you hold securities for more than 3 months, it's considered as capital gain tax.

Like someone said, if your stock income is lesser than 90% of your total income, then you should be safe. Better verify with LHDN on the percentage.