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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: shneed who wrote (10031)	9/2/2000 12:33:22 PM
From: dpl	Read Replies (1) \| Respond to of 18137

Is this only a problem if all the trades are for the same stock? Would there be a problem if the $50,000 trades were different stocks? David

To: shneed who wrote (10031)	9/2/2000 2:12:46 PM
From: Wayners	Respond to of 18137

According to my broker, once you have bought and sold the stock 4 times during the day, the fifth time will result in a margin call. I am not talking about accumulating 4000 shares and then buying another 1000, I am talking about about buying 1000 shares then selling it, then buying it back. So, in affect they are saying that if you have $200k buying power in your account you can only trade up to that amount during the day in total trades. Do you think that they wrong? What your broker is saying is true for a cash account. Some real real real conservative brokers might use this same rule interpretation in a margin account but I doubt it. Do you have a margin account? It sounds like you have a cash account. If you are trading in a tax deferred account like an IRA, margin accounts are not allowed so daytrading in them can become a problem. If you can establish a margin account I'd do it, otherwise for the daytrades you need to take a longer timeframe to increase your profits on each trade. You would need to take a several hour or swing trade approach.