|
Re: how do i day trade
Yes, SoulTrader is correct. I'm sorry, I should have been a little more complete in what I said.
The dollar amounts I quoted above are correct in order to open an account. However, opening a minimum trading account only allows for 3.5 round trips on a security in any 5 day period. If you hit 4 round trips within 5 days, at that point the broker would classify you as a "Day Trader" and require the $25,000. Actually Scottrade would require $25,000 and TradeStation would require $30,000 to be in the account.
The minimum $ accounts are good for learning how to trade and also for some Swing/Pivot type trading where you hold the stock or security overnight.
A "round trip" is when you buy a stock and sell it in one days trading session. So you could do a little day trading but it would be limited. Some Day Traders do 4 or 5 round trips every day. Some do 1 or 2. Some do a lot more. But you could get started with a minimum account. And the guys will tell you that for futures, there are no round trip limits.
|