Day Trading

This is not a day trading. however, it is calculated as business income and taxed at personal income tax rates (in India).

not day trading here would mean that the brokerage would be charged at delivery rates and not day trades, even though u havent received delivery of shares.

Depends on the broker
I have one that considers that one trade,,(as long as shares bot are sold that day) but another might consider it 2 or 3 trades,, you'd need to find a broker that day traders use

"The term "pattern day-trader" is defined 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. See Rule 431 (f)(8)(B)(ii)."

It seems to be any five business days.

If you buy and sell the same security for 4 days in a five day period, not only are you considered a day trader but also you will be tagged as a pattern trader.

A day trader buys and sells a security in a given day, so they have no open positions at the close of business.

A pattern trader is any margin customer 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.
As a pattern trader, you must carry a minimum equity of $25,000 at all times

Yes you can do that. You can buy/sell or short and cover as many times as you wish. Short selling is not restricted to big firms.

Make sure that when you close the short position you "cover" rather than "buy." If you just buy you open a new position and be long and short.

Also, if you have a loss it is not disallowed. If you have a loss and then trade the same stock within 31 days, the loss is deferred. The loss is used to adjust your basis on the subsequent transaction.

Also, be aware that trading that way will quickly get you labeled as a pattern day trader. (4 or more day trades in any 5 consecutive business days earns you that labeled.) At which point you must have a margin account and maintain a minimum balance of $25,000.00.

The above is for trading in the US.

There are two factors that will prevent you becoming a daytrader at this point.
1. As another stated, you can't open an account at 16.
2. As soon as you are labeled a pattern day trader, you will be required to have a margin account and maintain a minimum balance of $25,000.00. (Four or more day trades within five consecutive business days earns that label.)

Continue to study and save your money. You should also open a practice account. Then when you are old enough to open an account, start with regular investing, not day trading.

If you want to pursue day trading, wait until after you obtain some experience investing with real money at risk.

I would say one but ask your account rep. The deal with IRA"s is that you must wait three days for funds to settle before you can sell twice. In other words if you own 50 QID and sell it you may then use those funds to buy QID or something esle but cannot sell again until funds settle or you will be in violation of the free ride rule. In odrer to day trade much you would need a very large cash reserve. I couldn't tell you if the 5 pattern day trades per week applies to an IRA but I see problems attempting to day trade the account because of the affore mentioned rule.

There are two criteria that must be met to be considered a pattern day trader.

1. Four (or more) day trades within five consecutive business days. A business day is any day the stock market is open. Weekends and holidays don't count. Think of this as a rolling five day period, each day starting a new five day period.

2. More than 6% of the total trades in that five day period are day trades. Examples:

If you make 100 trades, 6% of 100 is 6. So if you make four day trades, you did not meet that criteria, and are not a pattern day trade.

If you make 50 trades during that that 5 day period, 6% of 50 is three. So if four of those were day trades, you would be classified as a pattern day trader.

From a practical standpoint, unless you are an extremely active trader, it is very easy to exceed the 6% criteria. So the best thing to do is focus on the "four or more" unless you want that label.

No, you cannot do that.

If you make 4 or more day trades within any 5 consecutive business you will be classified as a pattern day trader. At that point you must have a margin account and maintain a minimum balance of $25,000.00. This is a regulatory requirement. Your broker cannot make exceptions.

Also, in a cash account if you try to do a lot of trading, the T+3 settlement time is going to come into play. That means that when you sell a stock it takes 3 business days for the trade to settle. You can use those proceeds to buy another stock. But you can not sell that new purchase until the first sale has settled. (T+3 also applies to buys, it just isn't as significant for the buyer.)

If you are wanting to be a day trader, the 1st thing you are going to have to do is become an expert at technical analysis. Day trading is 100 % TA. You are going to also have to be well funded to even start….the minimum you will have to have is $25,000. The NASD provides that a pattern day trader is any account that makes (i believe) 4 or more "round trip" day trades within any 5 rolling day period. You must also maintain a MINIMUM of $25,000 to keep day trading.

You don't have to be a day trader to be successful as a trader. Explore your possibilities and educate yourself and put in the required time and you WILL be successful! Good luck!!