Replies to post #16085 on 8000 Incorporated (EIGH)

[GreenHatDude]

better be careful, the SEC will flag you and freeze your trading account if you do not hold the required min 25K...

[Trader S77]

Yes E*trade abides by that rule.. which states you must have 25K in your brokerage account in order to day trade consistently (more than 3 round trips within a 5 trading day period).

If you do not have 25K in your account and you make more than 3 round trips within those 5 trading days.. you will be flagged as a day trader and must meet a call which is a minimum of 25K to have your account unrestricted.

Restriction limits you to using cash only.

[Sup3rSlick46]

You need $25,000 (yes 25k) to open a Margin account and then become a "pattern trader" (technically not called a daytrader anymore).. Just use good money management and you will be there in no time! ;)

[chainweight]

If you have a cash only account, you can buy and sell all you want. However, the amount sold must settle for three days before you can touch it again. Under a margin account, you can buy and sell, and your money will be available immediately to trade again. Now you have to have over $25k in your account to do this more than three times in a five day period. I know this for a fact, since I've been on 90 day restrictions many times. Very frustrating to say the least.