I have 15000 dollars to day trade with. Am I going to be tagged as a pattern trader?

Question

I want to do some day trading but I don't want to be limited in the number of trades. How do I avoid becoming a 'pattern trader?'

Answer 1

The dollar amount that you have in your account does not "tag" you as a pattern trader or any other kind of trader/investor

A pattern traders 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.

So you will not be nor can be considered a pattern trader based on the dollar amount in your account.

Answer 2

you can either try to borrow $10k outside of the account so it looks like equity, or hold your positions over-night.  (as far as borrowing outside of the account to create fake equity, look into "credit card arbitrage" and apply the same principals to your trading account.  and this part goes without saying, but DO NOT USE THAT $10k TO TRADE!!!)

other than that, it might be tough.

i'm not sure, but you may be able to avoid the 4in5 rule if you do it through different accounts/brokers.

Answer 3

Open a commodities account. There is no such thing as a pattern day trader. You can trade the ES, which is based on the S&P.

Answer 4

http://www.nyse.com/pdfs/im01-9Microsoft...

http://stockmarketresources.blogspot.com...

If the first link doesn't work, you will see it under trading account pdf file in the second link.  You must avoid doing more than 3 pattern day trades in any 5 trading day period.  In reality, you should limit yourself to two, in case you mess up an order (nothing is worse than being right on your trade but buying a call instead of a put, and not being able to close it -- i've done it twice).  

Once/if you get $25,000, this limit will not apply . However, you MUST stay above $25,000 in equity at all times.

I would suggest you paper trade for a while until you get all your orders and management right (you will make mistakes, and have to establish strict trading rules), as well as establish some skill and experience trading.  Take it seriously.  Good luck.