Okay so if I buy a stock and I sell it in the same day, is that the only way it would be considered a day-trade? Are options subject to this rule as well.
Also, the five day period: is that Mon-Fri, or is that five consecutive trading days?
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, even if you learn everything about day trading 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.
This question was about day trading and there have been some pretty good answers that should help in your trading, and especially in relation to day trading, the answer has been posted in the categories listed below:
Related posts:
- What percentage of a persons total Day Trading account should they risk per trade?
- Does anyone know a website for New England States- Economic Indicators and Trade & Investment?
- How to trade stocks using Price as an indicator?
- How does international trade impact the key Canadian economic indicators like the unemployment rate…?
- How much money could I make day trading stocks?
- If I start to trade CFD's (contracts for difference), what technical analysis indicators should I use for….?
- Why did the SEC put restrictions on day trading and buying with unsettled funds?
- What is the most affordable way of doing day trading?
- What school or person is good to learn Day Trading?
- How do I set up my day trading business as a corporation?
A daytrade is the opening and closing of the same position on the same day. If you execute 4 or more daytrades in any 5 business day period (doesn’t have to be Mon-Fri), you’ll be labeled a pattern daytrader. Yes, this applies to options too.