Is this a day trade?
On day 1, 10,000 of stock is sold (1-3 stocks). On that same day, 1-3 stocks are bought for 10,000 - different stocks. The next day, all of of the stocks a sold. Is that a day trade? If so is that one or three? If the 10,000 is used again after the 3-4 day clearing period, is that also a day trade?
What if only 9,000 of stock is sold leaving 1,000 left? That 9,000 is used to buy stock, then the next day that 9,000 is sold - maybe 3-4 stocks sold.
What if one has 5,000 on a day 1, buys five separate stocks. Then the next day, sells them all. I'm certain that isn't a day trade? But if 5,000 is made on day 1 through the sale of stock, and then 5 separate stocks are bought the next hour or during that same trading period, is that 1 day trade or 5? Or none?
Are these all day trades? These idiotic rules are unclear. Obviously they are designed to protect rich people, brokerage firms, and investment companies but it's still really annoying. Other stock exchanges don't bother with these rules. I mean, if you go to the casino the government doesn't say you can only make 4 bets in a day because you can't be trusted to gamble your own money! No, feel free to blow all your money and give it to the casinos!
Stock market is RIGGED. government shamelessly interfers and says it is for our benefit because WE can't be trusted to lose our money, even though it should be our right in a capitalist state. and the government isn't setting the greatest example when they borrow BILLIONS a day to support itself!!!!!
and they want to PROTECT US? HA.
Update:common sense, you are delusional.
plus the rule assume you will make 25,000 to get to the limit. OFTEN, people will just borrow or sell assets to get around the arbitrary 25,000 requirement.
the big corporations and fast investment companies engage in DAILY corruption but the government goes after individual investors instead? let's see - does the gov. care about our interests, or is it most concerned about protecting the wealth of the wealthy? appealing to THEIR DEMANDS.
why do you think GS is so supportive of PDT? UH? NOT TO MENTION, if you want you find yourself losing money in a position, you might not be able to sell and buy into another that same day for fear of having your account closed. So you have to choose between losing all your money (possibly) or protecting your money but not be able to earn money on the SM for THREE MONTHS.
and other stock exchanges don't have this - in europe, canada, india. GS can downgrade Nokia, then buy 25 million shares, then upgrad
Comments
On day 1, 10,000 of stock is sold (1-3 stocks). On that same day, 1-3 stocks are bought for 10,000 - different stocks. The next day, all of of the stocks a sold. Is that a day trade?
NO, it is not consider a day trade. it will only consider a day trade if you purchase stocks and sell it at the same day. you are allow to sell the stock that you bought yesterday and start buying new stock.
When you enter and exit a position on the same day, whether all or partial, that is one day trade. If you partial out, that would be two day trades.
I am not a fan of the PDT rules either. It is unfair, unreasonable, and protection I don't need from myself. I don't need this much gov't or this much "protection." But that doesn't make the game "rigged" either.
There is a human tendency to jump right into something and "try it" before they know the first thing about it How did you learn to play tennis? You walked onto the court with a racket and a ball, right? Except in this case, financial ruin causes a deep disruption in society, all because some dreamer wants to be rich or make a million without any clue of the difficulty or consequences or knowledge to start or run a business. It is too tempting to the desperate, appearing too simple to the ignorant, and too available and appealing to immature youngsters raised on video games and making points that have no consequence or connection to reality.
Lightening reaction is all you need, right? Except Roger Federer faces you across the net, and you haven't yet learned how to serve, or learned what a "day trade" is yet. It appears the game is rigged, because Federer knows all the moves, uses the fastest and latest in technological advances in equipment and knowledge and simulation, his discipline is unnerving, he follows a plan to the tee, and can hit loop drives all day long into the corner and drop shots where you have to "stop out."
Trading is so much more complex than a simple tennis match. Until you have many years of experience, until you have read many books, developed and tested many theories, until you have the first hint of consistency or success, you cannot possibly fathom what you're missing. You are a blind man, claiming you can see; a pretender. Do not tread on someone that has been through decades of learning and turmoil and stopped to answer your question. We get frustrated with the pretenders and thrill seekers and gamblers and less experienced people thinking they can read a few paragraphs and blogs and blips off the internet and "know" something about trading, much less the little children thinking it's easy or the less informed claiming the game is "rigged". It's always easier to blame the gov't or the dang rules or anyone else rather than take responsibility for ourselves. It protects our little ego to play the blame game.
From your way of thinking, Engineering is rigged against you because there's too much math, or science because there's too much memorization and too tedious or the course length is too long. You just want to mix two unknown chemicals and become rich, but will probably blow up the lab. Minorities have complained forever that colleges are rigged against them, and how many conspiracy theories "hold them down?"
No, the markets are not rigged. They are extremely efficient and priced to perfection with penny-wide markets and known formulas and principles, if you care to learn. The rich have an advantage, and that will not change, no matter how much you whine.
For smaller accounts, if you want active day trading, you can trade index futures and options as often as you want without any of the hassle of PDT rules. Is the market "rigged" here also?
You can trade the Dow mini (/YM) or the e-mini S&P (/es) futures for as little as $500 margin through AMP Futures, and trade any of the other commodities as well, including forex futures, if you really want active trading with the sharks.
http://www.ampfutures.com/index.php
In the end, we must play the hand we are dealt, and there are always limitations.
Jacob:
You've gotten really carried away with this stuff. The stock market is not "rigged".... and if you believe it is... just stay clear.
What is clear is you have no clue how hard it is to Day Trade and be profitable. Is the government wrong in making Day Trading harder for folks with less money... Yes they are wrong. Is it "rigged" for the rich... is Day Trading rigged for the rich???? No... that's just ridiculous.
If you buy 200 shares of ABC stock and sell it today.... that's a day trade.
How do these rules protect the rich? That's just venting.... it really makes no sense on any level. It's only designed to protect the less affluent. The rich couldn't care less. 95% of the "rich" can't survive Day Trading. Most blow their accounts in well under 12 months. How are they "protected"?
Catch your breath. Read some books on trading. Also... check the link below;
How can you cash in on the potential growth that penny stocks have to offer? Learn here https://tr.im/S8qLf
There are three things you'll want to look for when picking a penny stock to make sure that you don't get penny stuck: Underlying business, financials, and footnotes.
When it comes to penny stocks, a company's underlying business is even more important than it is in exchange-traded stocks. That's because the penny stock world is home to "shell" companies that are legally incorporated, but don't have any business operations
Is this a day trade?