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?
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, the market is just too random and unless risk is controlled over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
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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.
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.