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I am using Robinhood and wondering how day trading is triggered and how first-in-first-out (FIFO) selling order works.

I bought GME stock yesterday and bought GME stock today. If I sell 1 GME share today, will it trigger day trading even though the GME stock that would be sold is technically the one I bought yesterday (because of FIFO)?

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  • 1
    Pretty gutsy to buy GME both yesterday and today.
    – D Stanley
    Commented Jan 27, 2021 at 18:30
  • 1
    ๐Ÿ’Ž๐Ÿ™Œ ๐Ÿš€๐ŸŒ™ To the moon.
    – user105949
    Commented Jan 28, 2021 at 19:16

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Day Trading rules and lot selection are completely independent. Robinhood spells out the rules pretty clearly:

When you buy and then sell the same stock or open and close the same options contract(s) within a single trading day, youโ€™ve made a day trade.

FIFO and other lot selection rules are only for tax purposes to determine the cost basis for stocks that are sold. If you've bought and sold the same stock in one day (regardless of whether you already owned shares of the stock) it's considered a "day trade"

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