I have 3 strikes and 4th makes me a DAY TRADER. What are the repercautions in making that status? I know you have to maintain $25,000 Min. balance. But does that change how I do my taxes? Does it limit my Margin Account? I have read up on it but still don't know.
Also, if you get tagged as a DAY TRADER, how long before you can go back to regular status? Also, can you cash the account out and make a new one and avoid it?
Posted by SoAngel on :
When you say 3 strikes, please explain ?
I know I can make 3 intraday trades in a 5 day period, but a 4th gets me in trouble, is that what you are saying ? Or are you saying that when you make that 4th, you get a strike, so I can get away with it a couple of times ?
I am curious, because I press the limits all of the time, but I never go over the 3 in a 5 day period because I don't have the funds available right now to be a day trader.
Posted by R1 Man on :
3 strikes as in 3 intra day trades in 5 days. 4th make me DAY TRADER
Posted by SoAngel on :
Damn, I was hoping there was a "strikes" rule as in a number of warnings before you are "out" ...
I am always holding stuff longer than I want to because my intraday trades are used up.
Posted by R1 Man on :
Yeah....they gave me 3 warnings. 4th is OUT
Posted by PCola77 on :
If you are labeled a PDT you have to either add enough money to your account to have $25,000 or your account will likely be suspended for 90 days. After that you go back to regular status, until you violate the rules again. There is no real implication to being labeled a PDT, it's just an SEC "protection" that if you are a PDT you can't have less than $25,000 and still trade.
Posted by Bill2Drunk on :
Thanks PCola77. I would hate to get into that sticky situation. (R1man)
![[Smile]](smile.gif)
as in a number of warnings before you are "out" ...