January 22, 2009
Please explain the following definition to me a little more clear. I can not understand the following definiti
sam e asked:
The NASD defines a Pattern Day Trader as "any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period".
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Comments on Please explain the following definition to me a little more clear. I can not understand the following definiti
Day Trading Futures Kingpin
it means that any customer that trades at least four times a week is a pattern day trader
Day Trading Futures Kingpin
So… a day trader… a person trading daily, is defined as what is stated.
Basically, they buy in the morning, sell at night or some other time that day. This is considered a day trade. Now take all the trades they do, add them up and get the percentage of all the 'day trades' they have made. If it's 6% of all trades within a period of 5 days, they are a pattern day trader.
Stock Trading Genius
Don't worry about what NASD thinks, trade in anyway you like best.
Forex Day Trading Maestro
example:
setting: Monday – Friday Jane trades 70 times and 5 were during the day.
5/70=7% roughly
'nough said?