Please if you don't know what I'm talking about please don't answer the question to get your two points and waste my time. These first two bone heads clearly don't know what im talking about. This first guy has no idea what day trading is. The second guy doesn't realize i'm asking for tips, that is my questions. You both are losers get a life.
Most successful daytraders (with emphasis on successful) trade small movements in highly liquid, higher-priced stocks (and/or derivatives of those securities or the indices).
Good luck.
Then Is this policy is also applicable if we just buy or sell some stocks more than 3 times in 5 days?
PLEASE ANSWER CLEARLY, I WILL SEE THAT THE BEST ANSWERER GETS 20 POINTS.
Example 1:
You sell short A on Mon and cover on Tue
You sell short B on Tue and cover on We
You sell short C on We and you cover on Thu
You sell short D on Thu and you cover on Fri
You sell short E on Fri and you cover on Mon
Conclusion:
YOU ARE NOT A DAYTRADER.
YOU EXECUTED 0 DAYTRADES
YOU NEED AT LEAST $2,000.00 USD AT ALL TIMES TO DO THIS.
YOU CAN SELL SHORT OR BUY 1000 STOCKS IN A WEEK OR MORE IF YOU WANT NO RESTRICTIONS FOR THIS TYPE OF TRADES.
Example 2:
You sell short A on Mon and cover on Mon
You sell short B on Mon and cover on Mon
You sell short C on Mon and you cover on Mon
Conclusion:
YOU ARE NOT A DAYTRADER.
YOU EXECUTED 3 DAYTRADES
YOU NEED AT LEAST $2,000.00 USD AT ALL TIMES TO DO THIS.
YOU CAN SELL SHORT 3 STOCKS IN A 5 DAY PERIOD.
THIS IS YOUR LIMIT AND YOU MUST NEVER BREAK THAT LAW.
Example 3:
You sell short A on Mon and cover on Mon
You sell short B on Tue and cover on Tue
You sell short C on Wed and you cover on Wed
Conclusion:
YOU ARE NOT A DAYTRADER.
YOU EXECUTED 3 DAYTRADES
YOU NEED AT LEAST $2,000.00 USD AT ALL TIMES TO DO THIS.
YOU CAN SELL SHORT 3 STOCKS IN A 5 DAY PERIOD.
THIS IS YOUR LIMIT AND YOU MUST NEVER BREAK THAT LAW.
Your get out of Jail Free Card costs $25,000.00 USD
If you don't have $25,000.00 USD YOU CANNOT DAYTRADE.
If you have any questions. Let me know.
If you don't have at least $25,000.00 you really should not daytrade.
THESE LAWS ARE FOR YOUR PROTECTION.
Do not listen to eaglesonaperch she does not know the Law.
Top 4 Answerer in Business & Finance. (Vote for me)
how does it all work?
It is very risky, and any gains are taxed at a higher tax rate, the short term capital gains rate.
It is supposed to work like this, buy a stock, wait for it to go up, and then sell within a month or so, reap the profit, and it is so much you don't care about the higher tax rates.
More often, it is buy a stock, panic when it drops, sell it and lose money.
80% of all daytraders lose money.
Be CAREFUL.
Thanks!
btw I'm only 16 and all I have is $1000.
hmm… guess I didn't read far enough into my books. thanks, though!
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.
If you list at least two of the books im reading this month i'll give you the "Best Answer"
So what are you guys reading?
2. The Stock Trader: How I Make a Living Trading Stocks by Tony Oz
3. The Nasdaq Trader's Toolkit by M. Rogan LaBier
4. The Master Swing Trader: Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities by Alan S. Farley
5. Tools and Tactics for the Master DayTrader: Battle-Tested Techniques for Day, Swing, and Position Traders by Oliver Velez
6. The Undergroundtrader.com Guide to Electronic Trading: Day Trading Techniques of a Master Guerrilla Trader by Jea Yu
7. Day Trading on the Edge: a Look-Before-You-Leap Guide to Extreme Investing by Leslie N. Masonson
8. The Guts and Glory of Day Trading: True Stories of Day Traders Who Made (or Lost) $1,000,000 by Mark Ingebretsen
Trading PENNY STOCKS will just increase your chances of failure and is akin to gambling: You may hit it big once in a while, but usually you'll lose.
As suggested, start with a 'Dummies' book or the like. Also, scour the internet for info on daytrading. Investopedia.com, for one, has some good articles on short-term trading and technical analysis.
What killed a lot of daytraders was the internetstock boom and bust in 2001.
I've also heard, though, that you can get up 4x buying power if you're a day trader with a larger account balance (say: $100,000).
Does anyone know what the typical "minimum" account balance you need to maintain to get up to this 4x level? Can you often get it with a $25,000 deposit (minimum amount needed for pattern day trading) or do you need to deposit six figures?
Thanks!
Im About To Take The Plunge And Day Trade From Home Full Time. Does Anyone Have Any Advice To Share?
Are there any day traders out there that have comments? Please share your experiences and tips
according to the insurance agent that responded you don't think that i can qualify as a 1099er self employed health care plan? i've seen a few out there on the web and their rates didn't seem that crazy
also $30,000 is the balance i maintain in my account i withdraw 2/3s of my earnings in the form a of a check after everyday i trade.
Also, the surest way to pile up losses is to expect your trading to pay the bills.
Is it 90 regular days or 90 trading days?
For full explanation go here;
http://www.patterndaytraderrule.com/