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Daytrading patten rule any way around it?
- Thread starter bat1
- Start date
if I'm not mistaken, you can do three day trades in a five-trading-days period at Scottrade without getting a daytrading margin call.
you can spread your money out across multiple accounts to get more day trades, although the amount per trade in each account will be less.
best thing to do is make a 25% return on the 20k! at least that's how I did it.
you can spread your money out across multiple accounts to get more day trades, although the amount per trade in each account will be less.
best thing to do is make a 25% return on the 20k! at least that's how I did it.
Quote from bat1:
I only got $20 grand to trade with.
Scottrade says I need $25 grand to
daytrade. So how can I get around this?
the rule is 4 complete trades aday in and
out in 5 days is patten daytrading. Right?
Yes, you can get around this, by putting in another 5K to get 25K...
My suggestion to you is not break this rule because doing so will get your account suspended.
The rule: http://en.wikipedia.org/wiki/Pattern_day_trader
This means a total of 4 in five days. Not 4 a day for five days...
trade futures instead. for stocks there are the SSF and for indices the eminis.
Once your price point is reached, you can sell in-the-money options to lock in your gain. Then , the next day, sell the stock and buy back the options. Of course, this could more than double the commissions you have to pay, so find a broker with low commissions, or at least one who will let you trade stock and options with a single commission.
better yet, take 5k and go to some prop shop that does'nt require a licence. get 20-1 buying power and you are off to the races.
then take your 15k and position trade until you reach 25k.
keep that 5k at the casino/prop firm and keep rolling the dice until you take that inevitable 10k loss and have to give 5k more to the prop firm which will bring you back to where you are now: at 20k.
then take your 15k and position trade until you reach 25k.
keep that 5k at the casino/prop firm and keep rolling the dice until you take that inevitable 10k loss and have to give 5k more to the prop firm which will bring you back to where you are now: at 20k.
dont do it u might blow it all
This actually sounds like a good plan.Quote from riddler:
better yet, take 5k and go to some prop shop that does'nt require a licence. get 20-1 buying power and you are off to the races.
then take your 15k and position trade until you reach 25k.
keep that 5k at the casino/prop firm and keep rolling the dice until you take that inevitable 10k loss and have to give 5k more to the prop firm which will bring you back to where you are now: at 20k.
You can pursue your goal, while not having to worry about capitalization problems.
No one can say "don't follow your dream", it is going to be entirely up to you whether you succeed or fail.
Of course, I wish you good luck.