Wasted day.

[eddyjo]

Help with I.B. TWS.

Five times I was in winning trades today, trading U.S. stocks

and each time I had cancel.,the problem was I dont know the

exact procedure in buying and selling. ... Each time I hit the

button to buy/sell and the appropriate block lit up at the price

I requested I then waited and at the price I wanted to exit I

then hit the buy/sell button then up popped a window saying

"POTENTIAL PATTERN DAY TRADE" I had no idea what that was

so OKd it and another trade price then appeared below, I now

had three prices showing and not knowing what was happening

I hastily cancelled all three. Please can anybody tell me where I

am going wrong?...... Its all so frustrating because I think my

trading system is showing some good entry points.


Regards Eddy.

 

[oatman]

You're classified as a "Pattern Daytrader" if you daytrade stocks 3 times in a certain period. I'll try and dig up the info but it's on this site somewhere as we've already looked at it.

 

[FTSE Beater]

Hi Eddy

My thinking is that you had 3 day trades within 1 calender week, and that is the limit with trading the US stocks unless you have a day trading account - which you need $25,000+

The day trade count if you open and close a trade in the same day.

HTH

 

[oatman]

Here it is http://www.nasd.com/Investor/Trading/Daytrading/day_trade_margin.asp

Good luck

 

[eddyjo]

Thanks Oatman, I will be studying that for a while, but on the

face of it I think I will have to learn a strategy for position trading

or go back to SB. does it mean that all the traders on this B.B

are position traders or wealthy individuals who just happen to

have £25000 spare.?

Regards Eddy.

 

[spoon102]

Note that there is no $25,000 restriction if trading futures.

Risky instrument if your new to this game though.

 

[JonnyT]

Hi eddyjo,

Some brokers are trying to get round the pattern day trade rules so it's worth investigating.

However you cannot hope to make a living at this game if you do not have enough capital to be classified as a pattern day trader IMHO.

JonnyT