Please help, what is definition of pattern day trader?
Posted 08 October 2008 - 09:41 AM
Posted 08 October 2008 - 09:49 AM
A FINRA (NASD) & SEC rule that applies to any customer, not only a margin customer but also a cash account holder, who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period. A pattern day trader is subject to special rules. The main rule is that in order to engage in pattern day trading you must maintain an equity balance of at least $25,000 in a margin account.
I'm sure some other members can give you more information.
Posted 08 October 2008 - 09:50 AM
I recently opened a $10,000. brokerage account for my wife to play around with (ETF's). She has bought and sold intra-day several times yesterday and today, and a screen just popped up and informed her that she has placed 4 day trades over the last five days and is mentioning some crap about "pattern day trading."
What is the Hell does this mean and how many trades is she allowed. It mentioned restricting her account from margin trading for 90 days, blah,blah,blah.
I have an account larger than $25k so I never have any issues with the broker.
Please explain this and what we should do, other than funding her account with more money. She's doing well but I want to "baby step" her into trading. She actually hot as a roman candle with this new venture and she is forsaking cleaning our house to day trading.... Have I created a monster?
Call your broker. Explain that you made a mistake trading too much due to volatility. You get a one time exemption. Just don't do it again.
Posted 08 October 2008 - 09:58 AM
Remember this day, men, for it will be yours for all time.
Posted 08 October 2008 - 10:01 AM
Posted 08 October 2008 - 03:48 PM
Edited by FRM, 08 October 2008 - 03:51 PM.
Posted 08 October 2008 - 03:55 PM
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
Posted 01 April 2014 - 12:21 PM
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.