Day trader rules that limit you to only 3 trades per 5 days is so outdated isn’t it?
What’s up with this "You’ll be considered a pattern day trader if you execute 4 or more day trades within 5 trading days, provided that the number of day trades represents more than 6% of your total trades within your margin account for that same 5 trading day period" if under $25K. I can see back in the day when people had to trade on the floor, but with everything basically electronic does this rule still need to be applied to light weights? Was it to keep the rich only type trading? What do you guys think? I’m new to this and trying to learn without getting burned because if you did this and you bought something that needed to be either bought or sold and they freeze your account I guess you’re just out of luck and lose out on what you may have needed to do if over 3 trades in 5 days. Also, is this 5 business days or 5 days in general? Hopefully I’ll have $25K to invest soon, but this seems like its more to protect the rich.
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June 10, 2021 at 05:40PM