If you’re not buying and selling the same security you will not have any problems
As long as you trade within in you buying power limits, or meet any and all margin calls, you should be able to trade as often as you want,
You can always buy twice you SMA, you can trade your buying power(which is twice you SMA).
For margin accounts, if you're marked as a pattern day trader, additional rules kick in. One example is a $25,000 minimum equity requirement, special margin limits, and additional ways you can get a margin call.
I don't know anything about a rule that blocks you from trading for a week, though if you violate some of the rules, you account can become treated as a cash account for 90 days.
Check this website (and the one it links to) for more details: http://www.patterndaytraderrule.com/
Because a security was sold that had not yet been paid for, this account will only be allowed to make purchases using settled funds for the next ninety days. Learn more about this restriction.
When reading this, I did not understand how they could restrict me. I never used the money I had for over 90 days. So how come my money was unsettled? Any clarification would be great. Of course I am going to call my broker as well.
Unbeknownst to you, you are being a risky (also unwanted) customer given your trading with "unsettled funds."
Good luck.
Mon : Buy 3
Tue : Sell 3
Wed: Buy 3
Thu: Sell 3
Fri : Buy 3 , Sell 3
My goal is to NOT be under day trade rules , but be as active as possible .
Thanks
For example if it was a cash account and you spent it all on the 3 buys Mon and used the proceeds of Tue sale to buy on Wed, you may not be able to sell the Wed buy until the following Monday unless you had enough already settled cash to cover the Wed buy. That might put a damper on your Fri day trade depending upon how much settled cash you had then beyond the Wed buy.
Although, if you had enough cash going into the week for both Mon and Wed buys, you may be able to use the proceeds from Tue sale for Fri trades.
So if you want to make a quick trade in less than 3 days, you have to make sure that you have the margin or settled cash to cover that buy before you would want to sell. So besides the amount available to purchase securities (which might not be settled yet), you have to be aware of what is actually settled when, or day trade buying power.
That is day trading. And if you do it more than 3 times within 5 consecutive business days the SEC will classify you as a pattern day trader. At which point you will have to have a margin account with a $25,000.00 minimum balance.
And keep in mind this kind of trading is risky. Even a good stock can turn against you without any warning, then take days or weeks to recover.
So which sites will let me day trade for less?
It seems to be any five business days.
Ive been doing really well with "day trading" SKF. I short it and buy at certain times. I cover my own rear with different trades and lock in a gauranteed return. my thing is I dont want to be labeled a day trader because I dont have the $25,000 to fork over.
ok I havent been buying and selling in the same day, I buy one day and sell the next. is that a day trader or 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