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Old 06-11-2017,
aeomletc18 aeomletc18 is offline
Join Date: Oct 2014
Posts: 0
Default Semi-new investor

Hi all, I've been following this forum for the past few weeks and reading a lot of posts. Some great info here and took the plunge and joined today. I've been away from trading for the past 10 years and am interested in getting back in with about 2K to start with. I noticed a lot of new SEC rules have come into effect. I'm mostly interested in swing trading. Looks like the SEC is refering to it as a Pattern day trader. I'm pretty good with reading charts and have a lot of discipline.

So my question is this, I know brockerage firms and the SEC has rules to make a 25K deposit into your account to be able to day trade (buying and selling stocks multiple times a day before the markets close. I'm expecting to invest about 1K per stock (probably 2 stocks to start with). Would I still be considered a swing trader if I trade less than four or more times in a three to five business day?

I simply don't have 25K to deposit into an account at this point.

Thanks all in advance ......
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Old 06-12-2017,
aezvuzfc47 aezvuzfc47 is offline
Join Date: Nov 2014
Posts: 0

Swing trading is usually holding for a few days to a couple weeks, and not subject to the pattern day trading rule. You will only be flagged as a pattern day-trader if you make a round-trip in a day; and do it more than 3 times every 5 days. So you're probably in the clear.
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Old 06-14-2017,
afoqafozurer afoqafozurer is offline
Join Date: Jun 2014
Location: Togo
Posts: 0

Thanks BT! So basically the new rules state you can't buy and sell before markets close more than 3 times in a 5 day period. That's kind of how I understood it when I read it. But I am still able to buy and sell in a 2 day to a week/s time frame?
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Old 06-15-2017,
agrovolokno agrovolokno is offline
Join Date: Feb 2017
Posts: 0

That is correct. If you don't plan on day-trading, you have nothing to worry about. The fun part is going to be finding stocks that are going to get you the gains you need in only a few days with just $1k investment. Good Luck!
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Old 06-15-2017,
AgustinMar AgustinMar is offline
Join Date: Mar 2017
Posts: 0

Thanks again! My plan is to do some virtual trading to get back into the swing of things again. I could invest a lot more than 1k but want to take my time and test the waters before I dive in head 1st, (I'm in no real rush). I know 2K won't get me enough gains to write home about. I'll invest more as my confidence grows again ....
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Old 06-16-2017,
admin admin is offline
Join Date: Dec 2010
Posts: 756

You'll want to put some options study on your list. Especially with small accounts, trading options instead of stock will help limit your potential losses, and increase your profits.

But as always, paper trade first.
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