Avoiding pattern day-trader status question?

Question

Let's say I bought stock XYZ on Friday, the 15th. I did not sell, but held it over the weekend. I sell XYZ on Monday, the 18th in the morning and then buy the same XYZ stock again later Monday afternoon. Again, I hold the XYZ through Monday night and sell it Tuesday, the 19th. But later on Tuesday, I again want to buy it. You get the picture. Now here's my question:

Is this considered pattern day trading? I am selling, THEN buying the same stock in one trading day. I am under the impression, however, that the activity I described above is NOT pattern day trading, because I am not buying and the selling the same POSITION in one trading day. Thus, I should be able to do the above 5 days a week without being designated as a pattern day trader by Ameritrade, correct?

Answer 1

You're correct, those are NOT day trades and therefore will not get you labelled a pattern day trader.   What you're describing are overnight trades, which you can do 2,527,438 times in one week if you like.

Edit: BTW, I've seen two references this week, including the response below, to the term "pattern trader."  The correct term is "pattern DAY trader," which should be obvious considering what we're talking about is day traders who are exhibiting a pattern of BEING day traders.

Answer 2

You are not a pattern trader nor are you a day trader

A day trader buys and sell the same security on the same day. Day traders like to be flat when the market closes and not carry over positions.

A pattern trader is one that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer's total trading activity for that same five-day period.

It is not Ameritrade that decides who is or who isn't a pattern trader, it is the SEC.   So you can relax, you're not a pattern trader, so don't worry about it until you're start going in and out on the same day in the same security

Now you can go out and enjoy yourself - happy trading, go get em