Question: What happens when you trade more than 3 times per 5 days?
What happens when you open and close a trade in one day more than 3 times per 5 days? In an account with less than 25,000$. I'm worried that I might have to spend the night in the stocks and have to walk the plank or something.
I don't get this rule. There are tons of Madoffs running around, but they actually care about making sure that us peasants can't day trade the extra pittance that's in our bank account?
Answer:
I doubt there is a problem with that
The limit is 4. If you make 4 or more round trips in the span of 5 days you will be considered a "pattern day trader" and if your account doesn't have the $25000 minimum it will most likely be frozen. As long as you don't go over 3 you should be o.k.