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Anyone Day trade stocks?

T

TubStain

Senior member
If you do, hows it going for you?

I started day trading in november very green about the whole thing, made a loss almost immediately, but persisted and broke even a month ago. I now feel very confident and am thinking of doing this hardcore as extra money along with my day job. Anyone day trade with Ameritrade? I just got margin approved, but it was mainly for contuously trading my own cash. I dont intend on using the margin buying power. Also, I dont have the minimum 25K for day trading and after asking them, they told me that I could keep day trading my own cash, I just couldnt use the margin to buy stocks until I was over 25K.

Can anyone enlighten me about the exact type of account that you need to day trade. i.e. compltely roundtrip your funds multiple times in a given day. I previously had a cash account that only allowed me to trade once a day.
 
I have about 10 grand that I play with. I already have teh skillz 😉.... I hope... from learning from my mistakes.. i.e. controlling emotions pretty much.

I just wanted to know more about the specific type of account needed to trade multiple times with my own cash. I had a cash account as stated, but couldnt trade multiple times.
 
I've been daytrading fulltime since '98-99. I made a ton of money the first 2 1/2 years, nothing really in the next 1.5 years (up to this year), and this year I have been slightly profitable this year, gaining momentum, but in the red when living expenses are included.

Fortunately I saved money when things were good and that provided a cushion for living expenses.

I've always used Datek, now ameritrade as well, and they have a great platform/technology.

Its been very difficult and it takes alot of discipline to succeed, which I have usually but has cost me dearly when I haven't. Having been an arbitrage trader on various exchanges previously definitely has helped too.
 
jjsole, I remember having a discussion with you in the past on atot about this.

Have you tried SIRI recently? I made a nice windfall recently off it that helped me break even. What type of account do you have with Ameritrade? Do you use margin? Can you trade with your own cash multiple times if you have less than 25K?
 
The hardest thing to do is hit the sell button. Nobody ever went broke while taking a profit. Put in your limit orders and be done with it.
 
For the umpteenth time, I know what I should do....but what type of account would I need!

aghghghghgh 🙂
 
Are you sure you are really "daytrading"? The way the term is officially used, daytraders only do complete roundtrip transactions everyday. If you are not out of a position by the end of the day, that is more like "position trading", or short term trading. With position trading, you whole a great amount of added risk, namely overnight risk. Especially in say, warning season, you wouldn't want to be holding a long position after the close and have the company warn after the bell.

I also used to use Datek (bought by Ameritrade). If you are serious you might want to check out Interactive Brokers for very cheap commission fees.

Not sure what kind of account you are asking for, but AFAIK if you have a cash account you can only do 3 roundtrips a week (in and out of the same position in the same day). After that you will be considered "day trading account", which as you say needs 25k. But with that 25k you can get leverage of up to 4 times your capital! So 100k to play around with...very nice for day trading.
 
Originally posted by: TubStain
I have about 10 grand that I play with. I already have teh skillz 😉.... I hope... from learning from my mistakes.. i.e. controlling emotions pretty much.
Click to expand...

Exactly what "skillz" do you guys use (or plan on using)? "momentum" trading or "sniper" trading? If you ask me, most of that "technical" analysis stuff is crap...
I find it hard to believe that day traders would be able to consistently beat the market.
 
Considering jjsole's background as an arb trader, and he's just about breaking even, I can't imagine anyone wanting to pursue this seriously.

It reminds me of a guy who came to our company's job fair in 2001. Up until 1999 he was an Executive VP of a local manufacturing company. That was when he quit to be a full-time stock trader (it even said so on his resume). I'm guessing it only took him a little while to blow a lot of his cash, and he had to go out and look for a job again.

 
why are you worrying about what kind of account do you have? The last thing Ameritrade will do is label you a daytrader without $25k in the account and close your account. I know a guy that does a lot of "daytrading" and Ameritrade labels his account as "pattern trading" account.
 
Originally posted by: TubStain
I have about 10 grand that I play with. I already have teh skillz 😉.... I hope... from learning from my mistakes.. i.e. controlling emotions pretty much. I just wanted to know more about the specific type of account needed to trade multiple times with my own cash. I had a cash account as stated, but couldnt trade multiple times.
Click to expand...

You just need an account with funds. They will decide the status. If they label you a "pattern day trader", then you need the 25k minimum. Here's the criteria:
A pattern day trader is defined as an account that makes four round-trip day trades (opening and closing a position in one day) in any rolling five business day period. Pattern day traders are subject to day trading rules and requirements.

The requirements are very clear but do not prohibit you from making trades based on rapidly changing market conditions. You may buy a stock that rises or declines within the same day. If you wish to sell it, sell it. You will not meet the requirements of a day trader. The rule allows for this scenario three times in a five-day period.

Example:

You trade ABCD exclusively and have $10,000 cash in your account. This gives you Day Trading Buying Power (DTBP) of $40,000 to leverage. You do not trade ABCD everyday but do buy and sell it within a price range of $50 to $65.
  • On Monday, you buy 800 shares at $50 and sell it Monday at $53 making $2,400.
  • On Wednesday, the stock price declines and you purchase 800 shares again at $51. Unfortunately, it declines from this point to $48 and you sell it on Wednesday losing $2,400.
  • On Friday, you see the stock back at $50 and decide to purchase it again. The stock rises to $56 and you sell it before the close on Friday.
In this example, you used day trading buying power equaling $40,000 without meeting the definition of a pattern day trader. Even though you made three day trades the account would not be subject to any day trading call or the $25,000 pattern day trader minimum equity requirement.

Above example is for illustrative purposes only.
Click to expand...

AND

Effective September 28, 2001, the NASD enacted changes to day-trading margin requirements, which may affect your account.

The NASD provides that a pattern day trader is any account that executes four or more round-trip day trades within any rolling five-business-day period, provided the number of day trades represents at least 6% of the total trading activity during the same five-business-day period. Day trading is the practice of purchasing and selling, or short selling and purchasing to cover, the same security in the same trading day within a margin account.

If activity in your account is classified as "pattern day trading," you may be subject to the following restrictions:
  1. <B>Minimum Equity Requirement</B> ? A pattern day trader's account must maintain a minimum equity of $25,000 on any day in which day trading occurs. Pattern day-trader accounts that fall below the $25,000 minimum equity requirement should consider limiting day-trading activities to cash-only transactions until the minimum equity amount is reached in order to avoid a day-trading buying power call.
  2. <B>Day-Trading Buying Powe</B>r ? Day-trading buying power is equal to the equity in your account at the close of business the previous day, less any maintenance requirements, multiplied by up to four. Accounts that are engaged in day-trading activities should consider being limited to day-trading buying power.
  3. <B>Day-Trading Minimum Equity Call</B> ? If your account has less than $25,000 equity and is identified as a pattern day-trading account, a day-trading minimum equity call will be issued. Pattern day-trader accounts that fall below the $25,000 minimum equity requirement should consider limiting day-trading activities to cash-only transactions until the minimum equity amount is reached in order to avoid a day-trading buying power call. Funds deposited in an account to satisfy a day-trading minimum equity call are subject to our 10-business-day hold policy with the exception of wires, which must remain in the account for two business days.
  4. <B>Day-Trading Buying Power Call</B> ? If your account meets the minimum equity requirements for day trading and exceeds the day-trading buying power at any time throughout the day, a day-trading buying power call is issued. Once a day-trading buying power call is issued, the day-trading buying power is restricted to two times margin maintenance excess for five business days unless the call is met earlier. If the day-trading buying power call is not met within five business days, the account will be permitted to execute transactions only on a cash-available basis for 90 days, or until the call is met. Multiple day-trading buying power violations may result in a restriction limiting transactions to a cash-available basis. Day-trading calls can only be met by depositing cash or fully paid securities, by selling non-marginable securities, or selling long options held in the account. Funds deposited in an account to satisfy a day-trading buying power call are subject to our 10-business-day hold policy with the exception of wires, which must remain in the account for two business days.
Additional restrictions may apply. For more information, please refer to the Margin Handbook. If you have specific questions about how these rules may affect you, please contact a Client Services representative at 800-823-2835.
Click to expand...
 
But with that 25k you can get leverage of up to 4 times your capital! So 100k to play around with...very nice for day trading.
Click to expand...

4x the potential loss....4x the potential gain!

So you've got to ask yourself one question: 'Do I feel lucky?' Well, do ya punk? 😀😉



(actually its helpful to trade multiple stocks at once...it would be suicidal to put 4x as many chips as one even has in one basket 🙂)
 
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