Response To A Reader’s Question: Pattern-Day Trading Rule

by PennyStocker on April 22, 2009

in Basic, Lessons, Short Selling

Hi Justin! listen I have one question about SogoTrade. You said something about limited amount of trades per week or did I misunderstand? how many stocks can I trade per day/per week?

Yes, If you’re a poor penny stock trader (like me!) trading with less than $25,000 then there are limits to your day-trading. This is not limited to SogoTrade, though, because every single brokerage out there has to follow the same rules…you can thank the SEC for their make-no-sense rule. Now a pattern day trader is one who makes 4 daytrades in 5 days…if you do that you are required to have $25,000 in your account. You CAN daytrade 3 times in 5 days if you have less than $25,000 BUT ONLY if you have a margin account.

You see me daytrading because even though I’m poor, I do have a margin account, therefore I can daytrade only 3 days a week. I haven’t yet used up my daytrades in a week since starting the blog, but I’m sure I will…and you’ll know cause I’ll complain and complain. Afterall if I really wanted to I could daytrade 3 times in one day..but that’s not smart considering I wouldn’t be able to trade for another week.

Plus if you want to follow the strategy outlined in my FREE eBook you’ll have to have a margin account. All you penny stocker’s with a cash account get NO daytrades whatsoever AND you can’t short penny stocks, or any stock for that matter.

If you have any questions, comment down ↓ there and I’ll answer them.

{ 3 trackbacks }

» Pattern Day Trading Rule | Penny Stocks | Penny Stocks To Watch » Penny Stocks Investing
April 22, 2009 at 6:27 pm
Pattern Day Trading Rule | Penny Stocks | Penny Stocks To Watch | Money Blog : 10 Dollars : Money Articles.
April 22, 2009 at 9:39 pm
Pattern Day Trading Rule | Penny Stocks | Penny Stocks To Watch « Day Trading
April 22, 2009 at 10:00 pm

{ 3 comments… read them below or add one }

joe April 22, 2009 at 5:58 pm

does sogotrade charges you fees if you cancel a trade order?

PennyStocker April 22, 2009 at 6:27 pm

Joe,

No they do not.

SpearsHenrietta24 April 10, 2010 at 7:26 pm

Every body admits that life is very expensive, however we need cash for various things and not every one earns big sums cash. Hence to get good business loans or just short term loan will be a right solution.

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