Taxes & Day Trading & Mark to Market Election?

I understand that filing as a "day trader" (subject to IRS day trading rules), one can file a mark to market election (various forms, etc.).
Question: If I have another full time job, and I lost $50,000 day trading, (over 400 trades in 2008 so far) if I file as a day trader, how will the IRS view this if I have another full time job? Has anyone else filed this way successfully (without being audited, penalties, IRS reversal, etc)?
If no, then can I file as a "part-time day-trader" with the M2M election and take say 50% of the $50,000 losses against regular income? (normal is $3000 limit on Sched D).

Public Comments

1. Day trading is a facts and circumstances deal. The fact that you have a day job and devote substantially less time to day trading does not make you a day trader. While you have 400 trades so far in 2008, that's a whopping 4 trades per day.

There is no such thing as a part-time day trader election.

Two, it apparently hasn't registered yet that to claim M2M for 2007, you had to have filed the paperwork with your tax return LAST April, not this April. The IRS won't let you realize that you have losses and then file the paperwork retroactively.

For 2007, you are stuck. The ENTIRE $50K loss goes on schedule D.