Daytrading - question on account size

S

sups

Those that are daytrading, how much do you suggest having in your account? I see people trading thousands of shares a day , how much money do you guys have in your accounts? I mean if you have 50K in your account and if you make a trade worth 30,000 ($30.00 stock * 1000 shares) and you get in and out. I thought you could only then trade the 20,000 left in your account because the 30,000 in the previous trade would then need to clear before you could use the money. Confused about that?

So, if you have a 50k account, how much can you trade with margin?

Thanks.
 
No you wouldn't have to wait for the money to clear because 50k with a margin account is 100k. So 100k - 30k = 70k. As long as you didn't dip below 50k
you wouldn't have to wait for cash to clear.

With pattern day trading rules you would have 200k margin


Atleast that's how I think it works.
 
Quote from sups:

so if you have a margin account, you can just make trade after trade?
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As long as you maintain $25K in the account, most retail firms give you 4:1 all day and 2:1 overnight. Your BP is freed up as soon as you are flat.

I strongly suggest you paper trade and learn the risk involved in day trading before you trade with Dad's money!
 
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