I would agree with MX2102, that one with an account size of lower than 25Gs (just to take a break from the ubiquitous "k" for once) should explore futures trading, and be done with the whole issue of equities. I, for one, am incapable of swing trading and consider it far harder than day trading to pull off. Actually, I'm no good at predicting what's going to happen more than about 30 seconds from now. Happily, there are markets with enough volatility to offer good returns in such short time frames. I have no idea why the SEC adopted the pattern rule, as I think it tips the odds yet further against the retail trader. It's just one more obstacle to contend with. Far from protecting us from ourselves, it asks us to become psychic like all the wannabes on CNBC who purport to know the future. Of course all trading involves predicting the future, but just as it's easier to predict the weather 30 seconds into the future than 3 or 30 days, so it is with trading, at least for me. Coming back to the original topic, futures are a good bet for their superior liquidity, good bid/ask spread, and the 60/40 tax advantage. The last reason is my main one for using them. However, when my account was under 25 big ones, I traded in Canada, Japan, and Europe. With Interactive Brokers, you get to trade in all kinds of freakish jurisdictions and for pretty low commissions, albeit slightly higher than the US. (If the instrument is denominated in US$, however, the commission is the same as if it were a US instrument, which is dirt cheap.) As you may know, the SEC stays out of your business if you trade instruments listed on non-US exchanges. Thus, you can day trade to your heart's content with an account of any size.
