Is a Pattern Day Trader trading the same stock four times a week?
I'm a little bit confused with the Pattern Day Trading restriction. If I buy MSFT and sell it the same day, for four days in a row, I am a pattern day trader. I understand that part. However, what if I buy MSFT one day and sell it, BBY the next day and sell it, ADBE the day after that and sell it, etc., Am I considered a pattern day trader? Also, is it the same for options?
Public Comments
- the big issue with pattern day trading is that you sell something before you actually pay for it and you do it regullarly enought that it is a pattern. It doesn't matter if it is a differnt stock. It is the trading that matters
- Depending on the brokerage company a pattern day trader could be exactly as you describe in and out of the same stock the same day and typically more then 3 trades.
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- yes and yes. You are pattern no matter what stocks you trade . I beleive its 4 trades on the same day in 5 consecutive days not 4. Also if you trade options its the same thing. I knwo it can be frustrating but I have learned to trade around this, meaning buy strength after 3 pm , that way you are not looking to sell immediately. DO not buy something which can move very fast in the other direction , like during earnings.
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