Pattern Day Trader question.

Discussion in 'Trading' started by Pooks, Nov 2, 2007.

  1. Pooks

    Pooks

    My question is if I buy a stock, and than later I sell it in 2 chunks.. Lets say half the position sold in the morning, and the other half sold in the afternoon...

    Now looking at it thru the eyes of the Pattern Day Trade police..
    would that all together still be considered 1 trade, or is that 2 trades?

    the reason I ask, is cause I know the IRS can only see our SELLS not our buys. so in this case 2 sells would register..

    making it look like 2 transactions.
    but ofcourse there was only 1 initial BUY..

    now the SEC is separate from the IRS i know, but its still government, and who the hell really knows how it all works.. well not me atleast.. so simple question I guess...

    is that 2 daytrades or 1?
     
  2. pirate

    pirate

    1 day trade.
     
  3. GTC

    GTC

    Pooks, it is two. Do a search on ET; there are detailed explanations.
     
  4. Pooks

    Pooks

    Are u sure?

    What would happen, if you had only 1 trade left..

    and u buy something..
    lets say u stop out for half the position..

    and than u want to sell the rest of it later..

    in your argument, after I sell the rest in the same day, my account would be frozen.

    or.. worse yet, my broker, doesnt even let me make a trade after I pass my PDT .. a PATTERN DAY TRADER warning pops up, I can't overide.

    so in that case, I couldn't even sell the other half of the position, without calling in i suppose.
     
  5. wake37

    wake37

    is there a limit to the amount of trades you can make in one day?
     
  6. YoungOne

    YoungOne

    Do a search there are brokers that will allow you to day trade with less than 25k, they will rip you off on commissions though. Just search my post history I've asked this question before as well. Good luck.
     
  7. Pooks

    Pooks

    Looks like it really is 2.. wow ok, got to boost up that account balance...

    To the poster above this post..

    If u have less than $25,000 Cash in your trading account, You are limited by the SEC to 3 Daytrades within 5 consecutive trading days...

    Example U trade on Tuesday, Wed, Thursday..

    U can't trade again till next tuesday..
     
  8. pirate

    pirate

    It's one trade - I just contacted IB, who confirmed this.
     
  9. Pooks

    Pooks

    Thats funny..

    I talked to IB via the chatroom about 20min. ago..

    and they told me its 2..

    CONFUSED WE ARE AGAIN.
     
  10. Pooks

    Pooks

    I can't find anything that covers this example...

    and.. the NASD regulation does not mention it specifically it either..

    it talks about MARGIN BUYING POWER etc...

    with one buy there is no way you are going to exceed that...

    All the data seems to point towards it being based on BUYS and buying power.. not sells..

    so I dont know what that IB rep told me 2... trades...

    it told the other poster its 1 trade..
    so now its really allover the place.
     
    #10     Nov 2, 2007