Question on day trade limits. *Noob*

J

jasonrest

Im considering moving from a paper trading account to live but,
Im getting different answers to a very basic question.

I am aware of the pattern day trade rule...
which states that if a stock trading customer makes four or more day trades (opening and closing a stock position within the same day) in a five-day period the customer is considered a day trader and must maintain a minimum $25,000 account balance.

Does that mean that as a swing trader if I hold multiple positions overnight this doesn't count as day trades and really there is no limitation on swing trades since the majority of the time, most positions will be held more than one day?
 
I found confirmation. I was correct. according to this.
https://www.thebalance.com/how-to-day-trade-stocks-with-less-than-25-000-1031365

If anyone other noobs were wondering.
  • Do swing trading and enter trades that you hold for longer than one day. Swing traders capture trends that play out over days or weeks, rather than attempting to time a one-day trend that might last for 20 minutes. While this is less a loophole and more of a change in strategy, it works for traders who want to stay actively involved but don't yet have enough equity to meet the $25,000 requirement for day trading.
 
The main disadvantages of swing trading include the need to run a thorough analysis of the trading setups, which might take substantial time, it may require thorough monitoring, and it may take longer time to generate yields in the long run.
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This means a Swing trader is not limited to one day. He can take enough time to ensure he makes profit.

Source: https://www.forexchief.com/library/forex-strategy/swing-forex-strategy/

You should read the entire strategy if you can.
 
The only problem I could see is hitting stops too soon. Pretty sure PDT is based off settlement dates so your still looking at holding for 3 days.

Don’t quote me on this. As a Canadian we don’t have this rule. We don’t even adhere to the free riding rules on U.S markets for some reason
 
Metamega said:
The only problem I could see is hitting stops too soon.....
%%
JR;Hitting stops swing trading may not be a problem for you,as long as you pay for commissions plus profit.......But NEVER completely give up ALL [100%]paper. Meaning what?? The E-versions of Stock Traders Almanac are a rip off/ overpriced.:D:DPay more for-
the longer slower paper versions. Best way is 52 weeks delayed; if one managed the top 7 funds may want to pay up for paper 2019 LOL Wisdom is profitable to direct.:cool::cool::cool:,:cool::cool::cool::cool::cool::cool:
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