Day Trading

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."

My experience has been that a "trade" is considered to be the order ans all of its fills. In the attached link, the SEC makes it very clear that a pattern day-trader is supposed to be a real day-trader. Counting each fill would snare too many customers in the net.

From Rule 2520:
"The term "day[-]trading" means the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account"

"The term "pattern day trader" means any customer who executes four or more day trades within five business days. However, if the number of day trades is 6% or less of total trades for the five business day period, the customer will not be considered a pattern day trader"

It's pretty clear to me that to "execute" a trade. I place an order and get fills. The order and the fills are a "trade". Now, if your two "buys" are based upon two separate orders, then the pattern you ask about would be two day trades.

Further info:
Interactiveborkers gives clear examples of day trades on their website. Another reason why I like that firm so much. Looks like your two buys and one sell example is just one day trade.

Yes, the market tends to dry up around that time. The best trading occurs between 9:30 and 11:00. I trade all day long, but my trades during lunch hours are few. It is already hard enough to make money and doing just during lunch time just appears to hard to do. You can try swing trading, holding for a week or two.

I do the occasional day trade in my td waterhouse account. I keep enough cash in the account to cover my trades, so they don't have a problem with the day trades.

Intraday trading is done in a simialar manner as u do normal trading.
if u square off the positions within the same day, then the system automatically treats it as an intraday trade.

if u want to trade for a higher amount than what u actually have in ur bank a/c, then u have to go in for margin trading. this will be available for only intraday trades. however it will be allowed only on selected stocks. Also it is enabled only after a few mins. of the opening of the market. All the orders here will be squared off at around 3.00 pm itself in the afternoon.

Yes, the market tends to dry up around that time. The best trading occurs between 9:30 and 11:00. I trade all day long, but my trades during lunch hours are few. It is already hard enough to make money and doing just during lunch time just appears to hard to do. You can try swing trading, holding for a week or two.

Yes, it's called a margin account. And I don't know of any brokers that will allow you to day trade outside of one. With a margin account, you buy stocks with money you borrow from the broker (you pay interest on open margins). This way your money isn't tied up during trade settlement. Of course, you have to keep cash or stock in your account as collateral against the margin loan.

The limit is 5 day trades per week, not 5 trades per week.

Although it may not be obvious, day-trading creates certain risks for brokerages and exchanges as well as the individuals doing the trading.

The higher account requiremens reduce the risks for brokerages and exchanges. For more information see

http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003881.pdf

The dollar amount that you have in your account does not “tag” you as a pattern trader or any other kind of trader/investor

A pattern traders is one that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer’s total trading activity for that same five-day period.

So you will not be nor can be considered a pattern trader based on the dollar amount in your account.

Day trades are not a good way to make money in the market. The transaction costs eat at your profits. Not to mention capital gains tax! I suggest reading the book A Random Walk Down Wall Street by Burton Malkiel. My finance professor recommended it to me and I must agree it brings some perspective to the craziness.