I have made several trades in my Roth IRA in the last few days. Is the buying and selling of the same stock in the same day considered one or two trades? I know it takes 4 trades in 5 consecitive business days to be marked a "pattern day trader". So what would really happen if my IRA was "marked", and since IRA's arn't eligible to be margin accounts, does it even matter? What are the consequences?
2007-12-13 12:14:36 · 6 answers · asked by Wondering???? 1 in Business & Finance ➔ Investing
I'm not sure if you can get "marked" in an IRA account. Because it's a "cash" account, not margin, it would be harder to do enough day trading to meet the requirements. In my IRA account, it seems that if I do a day trade (or even an overnight trade), I'm not able to reinvest the cash from the sale until the day that the purchase settles (i.e. the third business day after the purchase).
For margin accounts, if you're marked as a pattern day trader, additional rules kick in. One example is a $25,000 minimum equity requirement, special margin limits, and additional ways you can get a margin call.
I don't know anything about a rule that blocks you from trading for a week, though if you violate some of the rules, you account can become treated as a cash account for 90 days.
Check this website (and the one it links to) for more details: http://www.patterndaytraderrule.com/
2007-12-13 13:44:39 · answer #1 · answered by Dave W 6 · 0⤊ 0⤋
Excellant question! I look forward to the answers! I didn't know that pattern day traders would be unable to trade for a week! I trade on margin, and was going to trade in my retirement account when I start up one, but if I can't, then that's not good.
And I need to google, "pattern day trader" to see what that means!
2007-12-13 13:04:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Nothing happens unless you have less than $25,000 in your account. Under 25K... you must stop this type of trading.
Yes, your account is treated as a "cash" account in an IRA... but that has nothing to do with being or not being a pattern day trader.
2007-12-13 14:51:42 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋
Penny stocks don’t cost much money and promise big profits. But trading penny stocks is also a good way to lose money.
Sure, it’s possible to profit when you understand the game. Learn here https://tr.im/7T2GQ
For investors who can’t afford shares of Google or Apple, the potential gains from trades like this are too good to pass up. So penny-stock trading thrives. With a relatively small investment you can make a nice return if the trade works out.
2016-02-16 14:11:15 · answer #4 · answered by ? 3 · 0⤊ 0⤋
if you get marked as a pattern day trader you will be unable to buy any stock for a week.
2007-12-13 12:35:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋
1
2017-03-01 05:33:33 · answer #6 · answered by Nichols 3 · 0⤊ 0⤋