pattern day trader question

Discussion in 'Trading' started by thelost, May 23, 2008.

  1. thelost

    thelost

    hi.

    if i buy 100 shares of ABC on monday, another 100 on tuesday, another 100 on wednesday, another 100 on thursday, and another 100 on friday, will i be considered a pattern day trader?

    how about if i did the same as above and then sold 500 shares on friday?
     
  2. oraclewizard77

    oraclewizard77 Moderator

    Only if you used the dragon pattern when buying the stock. If you used the chicken pattern, then no.


     
  3. thelost

    thelost

    what is dragon and chicken pattern... :confused:

    i really need to know this because i want to swing trade stocks since i lost too much trading futures and i don't have 25k.
     
  4. Liger86

    Liger86

    NO, only if you buy and sell any security more then 3 times in any 5 consecutive business days!

    It doesnt get any more simple then that
     
  5. oraclewizard77

    oraclewizard77 Moderator

    And they say irony is lost on the young, or was that on the clueless.

    Also, if you don't know what irony is, google it.

    :)

     
  6. thelost

    thelost

    so if i:

    bot 100 shares monday,
    bot 100 shares tuesday,
    bot 100 shares wednesday,
    bot 100 shares thursday,
    bot 100 shares friday,
    sold 500 shares friday,

    this is considered 1 round trip?
     
  7. Liger86

    Liger86

    Yes, that sounds like one day trade during that week.

    You make more then 2 more trades the following monday and your account is reduced to cash trading with most brokers, if you're under $25,000 that is.
     
  8. thelost

    thelost

    ok thanks.
     
  9. Liger86

    Liger86

    Also,

    Try adding the word "WIKI" to what ever it is you google.

    Example: "Pattern day trading WIKI"