Replies to post #49293 on ALL THINGS AWESOME (ATA)

[Pacoloco]

I asked Derrick this exact question a while back and I'm almost positive he said that it did not count as a round trip unless you sold the second time. Just to replay the scenario: Johnny buys MDNM on July 23rd and holds until July 24th when he sells. Johnny later then decides to re buy MDNM on July 24th but does not sell until July 25th. Under this scenario I do not believe Johnny has used any day trades. I also could have misunderstood the scenario he was describing. I could be 100% wrong but moral of the story is Johnny should call his broker in the morning lol.

[johnny2525]

I got this message from etrade this morning. " A round trip is defined by an opening trade followed by a closing trade within the same business day. The opening trade can be a buy or a sell short. When the closing trade (a sale or buy to cover) is done in the same business day, it is considered a day trade." So in my case, I believe that selling a position that was bought prior to the current day and rebuking that same position that same day does not constitute a round trip. The statement pertains to opening a new pos and closing that pos on the as,e day. My scenario is closing a position and opening a new one.