Don't worry so much lah.....

Most "traders" are small fish. Meaning they can't make good money from stock trading. Those "good and lucky" ones maybe can make a few thousand a month consistently. Even that is quite an achievement already.

If a trader can make a large sum of money consistently, like above 10k per month, then they would be worried about not filing income tax. Otherwise, their money cannot be spent on cars, houses etc. LHDN will be knocking on their doors, so it is in these people's interest to file income tax to be able to use the profits.

Until you can be a pro in stock trading, I would say 99.9% of people can't really make a large enough amount to warrant the attention of the LHDN. So, the issue is not applicable to most people.

Actually, if LHDN tax you on your trading profit, it could back fire on them also. In the future, if you make losses from trading, you can offset the losses against your employment income and LHDN gets less tax from you.

So, until you are a pro, the small capital gain from stock trading does not bother LHDN. When you can make large amount of money until you can buy cars houses overseas trip etc, then you yourself will have no choice but to declare your capital gain