Most investors cannot beat the market index and will lose everything to trade commissions.
Stick with an index based mutual fund, such as, Fidelity Spartan 500 Index Fund (FUSEX). It closely tracks performance of the S&P 500 Index and costs just 0.10% per year. Most novice investors and even experienced investors are unable to beat the S&P 500.
AS you were told, you DO NOT have enough capital to day trade. All professional and experienced traders have sufficient capital in their account to cover all their puchases without depending on the proceeds of a sale to continue trading
Also, $2000 IS NOT sufficient to carry a margin account since the minimum equity requirement for a margin account is $2,000.
Point of interest - the rules governing margin ARE NOT established by FINRA but rather the Federal Reserve however, FINRA is responsible for having their members follow those rules.
If you were with my firm, my margin people would also tag you as not only a pattern trader, but also a potential "problem" account based on your account balance. Aand you would be tagged as pattern trader since what your doing is circumventing the rules by cutting trading after three day
If you're want to play in the game least have sufficient capital to do so.
I have a Margin Account, I like day trading but, I don't have 25K, my account have 2000$ and a margin of another 2000$, I wanna do this:
Buy XYZ monday and Sell the same day
Buy XYZ tuesday and Sell the same day
Buy XYZ wednesday and Sell the same day
Then, wait until the next monday and start over, How can avoid been catalogued as a Pattern Day Trader?
PD: I READ ON FINRA RULES THIS:
A broker-dealer may also designate a customer as a “pattern day trader” if it “knows or has a reasonable basis to believe” that a customer will engage in pattern day trading. For example, if a customer’s broker-dealer provided day trading training to such customer before opening the account, the broker-dealer could designate that customer as a “pattern day trader.”
Then, How can avoid all of this and continue to doing a day trading?
