Replies to post #31286 on Vestiage, Inc. (VEST)

[icgreen22]

Nice job explaining it:)

[chroff]

what if you have the funds to cover each trade? Is it the act of making 3 or 4 roundtrips in a 3 - 5 day term that will put an investor in the "pattern daytrader" category, or is it from making roundtrips without the funds to cover...where basically the trader is buying on margin without a margin account?

[chroff]

what if you have the funds to cover each trade? Is it the act of making 3 or 4 roundtrips in a 3 - 5 day term that will put an investor in the "pattern daytrader" category, or is it from making roundtrips without the funds to cover...where basically the trader is buying on margin without a margin account?

[Old_Drummerman]

Cool post, but I think you can only do 3 round trips...the 4th makes you a day trader.

From TdAmeritrade...

1. What is a day trade/round trip?
What is a day trade/round trip? A day trade occurs when you buy and sell (or sell and buy) the same stock or option position during the same trading day.


2. What is a pattern day trader/pattern day trading account?
What is a pattern day trader/pattern day trading account? Any margin account that executes four or more day trades/round trips within a rolling five business days has shown a pattern of day trading. The account will be flagged as a pattern day trading account and subject to the National Association of Securities Dealers (NASD) Pattern Day Trading Rules.


3. Day trading
Day Trading Margin Requirements/NASD Pattern Day Trading Rules What is a day trade/round trip? What is a pattern day trader/pattern day trading account?


4. Day Trading Margin Requirements/NASD Pattern Day Trading Rules
Effective September 28, 2001, the National Association of Securities Dealers (NASD) enacted changes to day-trading margin requirements, which may affect your account. The NASD provides that a pattern day trader is any account that executes four or more round-trip day trades within any rolling five-business-day period. Day trading is the practice of purchasing and selling, or short selling and purchasing to cover, the same security (equities or options) in the same trading day within a margin account.

[Buckey]

ahhhh that $25 k thing dont apply if you trade a lot - MY broker and its a discount one send me prizes in the mail LOL.