I'll call this How to NOT day trade.
I've been investing for a while now, so I know enough for what I do and for what works for me; and if I take a long position I hold it for quite a while, so learning the intricacies of daytrading was not a concern for me. However recently I have had some decent results paper trading frequently.
So, hear me out and correct me if I am wrong on something:
- A day trade is when I buy and then sell the same stock in the same day (or sell and then buy)
- Patter day trading is when I do 4 or more daytrades within a 5 trading days period
- therefore I could do 1 day trade per day, every other day and be clear; or 3 daytrades on monday then nothing till the following monday
I think I am good so far, correct?
What if I do something like this
- Monday: I buy stock in A, B, C, D, E.
- Tuesday: I sell A, B, C, and buy F, G, H
- Wednesday: I sell D, E, F and buy I, J, A
and so on, in all practicality I would readjust my portfolio every day with about 50% turnover every day. They way I understand it:
- it's no day trading
- if I have losses in stocks that I buy within 3 days of sale, I can't take the tax loss.. I am OK with that
- I have to wait T+3 settlement, unless I have unused margin and I stray within my margin limits
- of course brokerage fees
Anything else I should be aware of logistically speaking?
Submitted March 22, 2017 at 03:54PM by PM_ME_BOOBPIX http://ift.tt/2no8rIX
