I was just about to get into day trading but I was going to start off with $5000 and $2500 in margin but i just red the margin/day trading policy and I believe it said that if I make more than 4 full trades in a week, then they will suspend my account untill I have a $25000 minimum. is this true?
I doubt they would do that, but ask them to find out for sure.
The thing is if you are trying to day-trade with $2,500, the commissions are going to eat up your entire investment. It will probably cost you $25 to buy and sell. The less money you put in, the higher your break-even point becomes. I never put less than $3,000 into a single stock or you just can't make any money off of it.
You also picked a terrible time to start trading my friend. Wait until the recession is over. Things are going to drop at least another 15% in the coming weeks. Your "day trading" will become "month trading" while you sit and wait for your stocks to come out of their loss positions.
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