The NASD defines a Pattern Day Trader as "any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period".
Please aslo explain to me the meaning of "day trades"
I believe this literally means that if you buy and sell a stock during the same trading day 4 or more times over the course of 5 trading days, you'll get labeled a "pattern day trader," which means you'll have some restrictions placed on you by your broker.
So if you bought and sold 100 MSFT 4 times in 2 days, let's say (and if these 4 trades were more than 6% of your total trades during these 2 days–which is very likely), you'd get labeled a "pattern day trader."
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