Tuesday, May 22, 2007 4:18:26 PM
We can flip as much as we want...
so long as we don't sell stock purchased
with unsettled cash (until it settles).
Day trading is another matter...
pattern day trader
An SEC designation applying to any individual who buys and sells a particular security in the same trading day at least four times in a five-day period, and for whom same-day trades make up at least 6% of the trader's activity during that period. Pattern day traders are subject to special rules.
The NASD passed new margin rules in September 2001 that require active traders to have $25,000 of trading capital for active traders. These rules apply to anyone who fits the SEC's new definition of a "pattern day trader"
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