Five and Under

[sd3]

I actually received a call from an ETrade rep last night asking me if I understood this rule. Basically if you buy and sell the same stock within the same day, that is considered daytrading. If you do this 4 times within a 5 day period it is considered a "pattern" daytrader and you must be on a margin account, $25000 limit with buying power up to 4 times that amount. The rep also told me if you buy the stock today and sell tomorrow that is not considered daytrading and is a way around this rule.

Hope this helps anyone unclear of the new rule.