| Everyone has heard about the day trader glued to | | | | with the right type of program and a little |
| the computer and turning $100 investment into | | | | background knowledge. It may mean trading the |
| millions. It makes a great story but it just doesn't | | | | same stock every two or three days, which doesn't |
| work that way any longer. In the old days, anyone | | | | put you into the bracket of a pattern day trader. |
| with a meager investment, a computer and a | | | | You do make just as much money with fewer |
| brokerage account could become a day trader. The | | | | trades and a little less tension. |
| government stepped in and changed all that. Of | | | | Day stock trading is riskier than pattern trading. You |
| course, they were protecting us from ourselves but | | | | have to wait for just the right moment to click that |
| it made it a little more difficult for those that want to | | | | trading button. If you use the slower method of |
| be as aggressive as possible and watch their money | | | | following patterns of price over several days and |
| grow rapidly. | | | | using the pattern for your profit, you simply need to |
| Day stock trading is now often for those with ample | | | | place a limit order to buy or sell when the price |
| finances but you can get around the regulations by | | | | reaches the peak or valley. |
| adjusting what you consider day trading. | | | | While this type of trading doesn't give you the same |
| First day stock trading is buying and selling the same | | | | thrill as making money immediately, you can get your |
| stock in the same day in a single account. If you do | | | | adrenalin fix in other ways while you wait for the |
| this more than four times in five days, you become a | | | | orders in your account to take effect. You do have |
| pattern day trader. Once labeled as a pattern day | | | | some important concepts, however, to keep in mind. |
| trader, you have to maintain an equity balance of | | | | The first is that sometimes the market tricks you a |
| $25,000 in your account or face the prospects of the | | | | bit and you'll notice that the pattern deviates. It |
| having the brokerage house limit your account | | | | might mean that you buy and sell in the same day, |
| transactions to liquidation only until you reach $25,000 | | | | counting as one day trade against your account. |
| or up to 90 days. That seriously impedes the person | | | | When this happens, you have to become a little |
| that is just starting into day stock trading. | | | | more cautious on the rest of your trades until that |
| There are ways to avoid having your account closed | | | | five day period expires. |
| and forcing you to meet the high balance | | | | Other times, either the stock drops like a rock after |
| requirement. One of them is never to make more | | | | you purchase or climbs beyond reach after you sell. |
| than four day trades in a five-day period. Rather than | | | | With the proper knowledge you'll recognize when it's |
| taking advantage of small patterns, you can watch | | | | about to break through the ceiling or floor and avoid |
| for larger movements over a few days. However, in | | | | making the fateful move that could cost much of |
| order to do this, you need training in how these | | | | your bankroll. In day stock trading knowledge and |
| patterns occur and what those patterns look like. | | | | experience makes the difference between a failed |
| Looking for patterns in the stock prices can be easier | | | | attempt to make more money and serious cash. |