According to the NYSE definition of "day trading" the sale of an existing position from the previous day is a liquidation. The repurchase of that position is the establishment of a new position. It is not subject to day trading margin requirements.
If you are using a cash account, settlement rules would still apply.
Stock brokers are the folks who bring the BUlls [BUyers] and BEars [SEllers] together. By doing this they earn their fees and commissions.
A free site: http://investopedia.com . It’s recognized by Y! A as a "Featured Knowledge Partner".
As you are doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before.. You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopedia’s dictionary.
It probably won’t be long when you’ll feel you’re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money.
http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner".
If you want examples:
A] Go to the yahoo finance site.
B] Under the "HOME" tab is a blank box. Begin typing the symbol or the company's name. As you are typing a drop down menu will appear with symbols.
C] When finished click on the "GET QUOTE" button. The quote for that stock should be displayed.
D] On the left side is a blue box. The 3rd line down is "Options". Click on that.
IF that company has options, the option chains will be displayed. Not all companies have options. In fact I don't think there are too many companies under $5 which have options.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
1.In day trading all the shares which you sold today should buy on the same day.
2.In delivery trading you can buy share today and you can sell it tomorrow (or any other day which you want). If so if am selling shares today then how it is classified as delivery trading or day trading (intratrade)? Or how I can prove that I am not doing Day trading?
3.Suppose I am selling 10 RPL share today which I bought 10days back, then how it is determined that it is not under the category of day trading. (otherwise I have to buy it back according to day trading rules)
4.Suppose I have 10 RPL share, one share cost Rs. 400. I want to place an order of selling today for Rs.1000. Is it possible? Or who has to decide the selling price (Minimum/Maximum)?
5.Is there any restriction that one cannot sell all the shares of particular company on same day? (Suppose I have 100 RPL share. I want to sell all these today. Is it possible? Of course if there are people to buy it only?)
6.What is pari-passu?
7.I have a Demat Account in ICCI. Can I use the same account to do trading in Sharekhan?
8.Today (11/02/08), the RPOWERL has been listed for Rs.530/. What is the basis of listing the same?
Hope some people will help me to find out these things.
Since you asked this in the U.S.A. forum: To day trade an account MUST have AT LEAST $25,000 U.S. in cash on-hand every trading day. This does not include any positions or any unsettled transactions.
The time it takes to settle stock trades is 3 business days.
As soon as the balance goes below $25,000, the trader must fund the account with more money OR a whole new set of trading rules applies. This varies from broker to broker, but the $25K is a hard. fast rule.
Your Q2: In the U.S. this is referred to as "swing" trading.
Broker electronically track every trade by every trader. When the trade is placed, you confirm the trade AND you have the iopportunity to print every trade placed, confirmed and completed. Yuor account also reflects the balances.
Your Q3. Day trading is in and out [entering and exiting] the same shares in the same company on the same trading day - regardless of the price.
Your Q4. You decide your own buying and selling prices through various kinds of orders.
Your Q5. Refer to my remarks.
Your Qs 6 & 7: I DON'T believe they apply to the U.S. exchanges.
You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to this free site, recognized by Y! A as a "Featured Knowledge Partner":
http://investopedia.com
Investopedia also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with your own hard-earned money.
http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
I use options so that I do not have to risk that much cash(5K) but willing to take the volatility of options.
What indicators and what confirmations should be used to make 1 day-trade per day? .03 - .06 per trade would be fine trading 40-80 contracts.
I currentl use QuoteTracker software using EMAs and WMAs, MO, TRIX and RSI as indicators.
I just can't seem to get very successful using my settings.
What have you successfully used? What should I be using and what should I be looking for?
Dan
She is correct that ETFs by definition are less volatile, so why would you want options (a bet on volatility) on the least volatile ETFs? You should only be interested in shorting/issuing them.
However you haven't actually violated the rule yet. The definition of a pattern day trader is: "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."