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Magal Security Systems Ltd. Message Board

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  • reneew97 reneew97 Jun 4, 2004 9:34 PM Flag

    Double Dip

    Once you become a patteren day trader they margin rate is increased about 3 times the amount it would be with a non patteren daytrader account. So 25k is close to 80k in buying power. With 80k and a 5 cent mover on 7000 shares of say orcl you could make or lose 350 bucks in a matter of minutes. I buy when something hits the day low plus 5% more of the loss on the day. Same thing with a short on a high for the day, unless the stock is in a tight trading range. I use 1 minute charts and have 5 pcs going all day long plus renees laptop for message boards and her e mail. If you account drops below 25k you will get a daytrading call and have to send in a check to bring it back up to 25k.
    The rule was passed after so many mom and pop traders lost their asses in 2000 crash. IMO it is much like a casino who closed their doors after many people lost nearly all their money.
    I also have another account I strictly use to buy stocks and sell covered calls on, I do about 5-11% per month in that account.

 
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