I’ve been told that online stock sites allow 4 trades within 5 business days and that a "sell" is a trade. You can "sell" 4 times in 5 days. So, when exactly does this 5 day count start?? As soon as I buy and sell 4 stocks.. or even when I buy and sell the first one(whether it’s at the beginning or end of the week)?? Please help me figure this out! THANKS!!
I have an account at zecco.com and I’m trying to figure out how the trading works. I know that if I have the min. of ,000 then I can become a pattern trader (day trader).. but if I have less than that amount.. then how many trasactions are I allowed to make within the 3 or 5 day period?? because I know once I complete a trade I have to wait at least a few days for that money to be processed and cleared before I can use it again. So, does every trade require a waiting period for the clearance of the money, or only after the first few in that time period? I hope that all makes sense.
Additional Information - Make Extra Money Online? Hello, I just landed a new job where (fortunately or unfortunately) I now have a lot of free time at work (say 2 hours a day). I have unrestricted, fast Internet access. I'm looking for ways I can use this time to make some extra cash. My ideas so far:......
- Which REGION BEST DISPLAYS the FAILURES of Obama's FOREIGN POLICY: LATIN AMERICA, MIDDLE EAST or ASIA? It is, on one hand, a vision of romantic liberal internationalism not seen in the White House since the days of Jimmy Carter. From the tropical gulags of Cuba to the now-blood stained streets of Tehran, from the festering sore of human despair in Pyongyang to the tin pot dictatorship......
- found this in a forum..does anyone know if this really works? Found these tips on reducing cellulite online.Do these things really help? I suggest cutting back on the soda..I have heard that soda causes cellulite. I have no cellulite..I use Folger's instant coffee crystals and mix it with water for a home made mask and apply it to my thights and......
- Need avg. $ of a few procedures plz:? This is going to sound somewhat crazy, but during the next few years, I want to have some procedures done and need to know how to calculate an out of pocket cost for all. I am just looking for an estimate or at least a web site reference where I......
mason pearson 15th March 2010
The Shadow is ABSOLUTELY incorrect.
The period starts with a trade. Five business days, NOT five days.
If you are trading in a margin account, you don’t need to wait for the funds to clear. You can buy with your equity in the account.
THIS is why so many day traders go broke.
When you put $25000 dollars in a margin account, you have $50000 buying power. You borrow 1/2 from the brokerage firm.
In the account you will see your cash, and your buying power.
IF the stock you bought goes up so will your buying power.
To many traders think that is THEIR cash and trade accordingly.
BTW the Pattern Day Trader rule is a SEC rule, you can not get around it. The firm does have a little say, like you didn’t realize you had traded that often. But the second time you either put in the funds or you are suspended from trading for 90 days.
Common Sense 15th March 2010
I think you’re referring to the SEC rules for day trading, which requires a $25,000 account balance or you account will be suspended. The brokers don’t like doing this because they’ll lose money. But… the law must be followed.
This is, for the most part, a good law. There are people out there that start to trade without any knowledge &/or real capital to ride the bad times. People that can’t afford to lose their money, do so… big time.
Many people actually start to day trade without taking the time to read several books. They truly don’t understand risk. They never heard of position sizing or money management, as it pertains to trading. It’s very sad.
The Shadow 15th March 2010
That’s not true. I’ve done four trades in an hour with no problem. Brokerages make their money by trading. They want to you to trade frequently! There may be special capital requirements for day traders, but there is not a restriction on the number of trades in five days.
You may be thinking of mutual funds. Some funds have restrictions on frequent trading. They vary by fund.
Barbara J 15th March 2010
You can get a HUGE list of upcoming Penny Stock companies and tips at http://www.Penny-Stocks-List.com
Its a great resource for anyone interested in penny stocks.