WEALTH UNIVERSITY

[Bruce A Thompson]

Not quite true

Price does not matter. A buy and a sell of the same cusip # stock, in the same day, in any order, constitutes a round trip. If you sell yesterday's buy this morning and then buy it back this afternoon, you have made a round trip today.

4 Round trips in a 5 day period classifies you as a Pattern Daytrader and requires you to have $25,000 equity in your account at all times.

If you are a Pattern Daytrader and your $25K equity was provided by the huge chunk of Bear Sterns stock anchoring your portfolio, you would have woken up one day a few weeks ago to find a call for a deposit of cash or securities email from your broker. Failure to have done so would have resulted in your margin privileges being revoked.

BT

BT