Questions tagged [day-trading]
To be used for questions related to trades squared off the same day and do not involved deliveries. Typically used in the context of Stocks trading, can be used for Options or other trades. Related tags are trading, trading-volume, online-trading.
179
questions
50
votes
12
answers
16k
views
Why is day trading considered riskier than long-term trading?
I have read all of these disclaimers about day trading emphasizing how experienced and cautious you have to be. But I don't see how it's any different than buying a stock at a low price and holding on ...
- 693
42
votes
5
answers
9k
views
Is trying to learn day trading a complete waste of time?
I understand there is a lot of people, maybe even most, who believe day trading is far too risky or the person trying day trading won't be skilled enough. I have gotten interested into investing ...
- 383
40
votes
6
answers
66k
views
Maker taker fees - can somebody explain in plain english?
I'm interested in learning about how trading works, but this is all very new to me so bear with me. (I'm just poking around at this point, obviously nowhere near ready to actually be trading)
Some ...
- 419
21
votes
3
answers
22k
views
Wash Sales and Day Trading
Let's say a Day Trader buys and sells a stock on the same day and makes a loss of $1,000. Then she buys and sells the same stock the next day and makes a profit of $500. On the third day she files her ...
19
votes
2
answers
4k
views
What's the point of the wash rule?
I don't understand the 30-day wash-rule. Someone please set me straight.
So let's say I purchase 100 shares of Hot Stock X, for $100 apiece. So $10,000.
Let's say that the stock goes down 50% on a ...
- 313
15
votes
3
answers
6k
views
My account's been labeled as "day trader" and I got a big margin call. What should I do? What trades can I place in the blocked period?
HI I recently received a day trading margin call of $14,852.63 requirement. I do not have that much money. What should I do? Should I close my trades and take all cash out? The system labeled me as ...
- 277
14
votes
6
answers
7k
views
Why don't traders place limit orders at all prices to be first in line when the price moves?
In markets with price-time priority, why don't traders enter limit orders at all prices, so that they could be first in line when the price moves? For example, if the current best bid is $10 and the ...
- 16.9k
14
votes
2
answers
13k
views
Is my algo trading illegal?
I have algo trading program (written by myself) and when it detects that price are going down it's going to sell shares (if I have one) wait a couple of sec/min and buy the shares on lower price.
Last ...
- 455
14
votes
1
answer
3k
views
How is it possible that these deep ITM stock options on DISH went from 52,000 volume, 550 open bids, 550 open asks to being completely dead overnight?
I bought 16 years of historical hourly stock options data for my personal investment study to test how particular strategies may have played out over a long period of time.
I'm looking at the data for ...
- 419
13
votes
9
answers
4k
views
What is the point of using a limit order?
I'm pretty new to trading, more specifically day-trading, and on my paper trading account, I am given the option to trade at the market's current value vs. putting in a limit order. I could understand ...
- 141
11
votes
4
answers
12k
views
Is it bad practice to invest in stocks that fluctuate by single points throughout the day?
It seems like a no-brainer to me:
Find a cheap stock with a good name (Dell, FB, Sony) that fluctuates by a few dollars per day
(between -$2 and +$2), and is consistent in the fluctuation throughout ...
- 341
10
votes
2
answers
45k
views
Ways to avoid being labeled a pattern day trader
Other than the obvious answer of "don't day trade" what ways can I avoid being labeled a pattern day trader.
I've read the rules for when the label is triggered but I'm wondering about some real ...
- 879
9
votes
2
answers
28k
views
Where do short-term traders look for the earliest stock related news? [closed]
While I'm no short term trader (or even a day trader), I imagine it is of high importance to these people that they hear about significant stock related news as early as possible. This would allow ...
- 307
8
votes
3
answers
2k
views
Forex vs day trading for beginner investor
In essence, for a person that has not had any real experience with either (except for playing around in simulators like investopedia):
which one would an individual have the most potential to ...
- 341
7
votes
9
answers
7k
views
Is it unreasonable to double your investment year over year?
I'm making monthly contributions to my self-directed investment account and I'm looking to be aggressive with my investments because I want more than 10-15% returns each year. One of the positions I ...
- 219
7
votes
1
answer
854
views
Why doesn't buy at open get the official open price?
Every day, a stock or ETF has an official open price, like its high, low, and close prices. If I put in a market-buy-at-open order, whether well before the open (overnight) or just a minute or two ...
- 71
6
votes
5
answers
14k
views
How can I buy and sell the same stock on the same day?
In the United States, Is it possible to buy and sell the same stock on the same day? I heard day traders can do this, and you need to have at minimum of 25K in the account in order to be a day trader. ...
- 451
5
votes
2
answers
11k
views
How does anyone make significant money on very low volume stocks?
After getting some answers to a related question, I thought I'd post a follow-up. It seems that if there is a low-volume stock, even with significant daily swings in stock price (e.g. 10-15%), one ...
- 2,187
5
votes
1
answer
609
views
Day Trading introductory books
I realize that day trading is considered to be highly risky, but the subject fascinates me and I would like to learn more about it as well as read about past experiences, both good and bad.
Do you ...
- 307
4
votes
1
answer
444
views
Which risk did I take winning this much?
This morning I made a large percentage profit on a position that the Japanese Yen was going to be strong. It seems that the estimate was correct, but I made much more money than expected. I more than ...
4
votes
1
answer
206
views
How can a broker support mass copytrading with a $100 investment when there is a larger account minimum for day-trading?
My understanding of the U.S. rules for day-trading is that you must have $25,000 in equity at the time you make a day-trade.
Yet, a broker like eToro offers "copytrading", which mimics another ...
- 203
4
votes
1
answer
730
views
Is this the right formula to use implied volatility to gauge probability of a stock being within a certain range?
I read online somewhere, and I can't find it now, that to find the probability of a stock hitting a certain price within a certain time frame, we can use Implied Volatility:
X = StockPrice * IV * ...
- 475
4
votes
1
answer
219
views
Are there disadvantages to day trading ETFs?
I bought an ETF a few months ago and I was thinking of selling it, however, I was wondering if there were disadvantages or additional fees if I treated ETFs like short term stocks.
- 4,334
4
votes
1
answer
171
views
Significance of the first twenty and final thirty minutes of the trading day?
I have been day trading for a month, and I've noticed that the first twenty and final thirty minutes of the trading day seem to have repeating patterns. At the beginning of the day prices will often ...
- 143
4
votes
3
answers
456
views
What is a good service that will allow me to practice options trading with a pretend-money account? [closed]
I want to get a little more practice before I put my money on the line.
I was using Paper Money from thinkorswim through school, but my account is bugged where the buying power will not update. The ...
- 141
3
votes
4
answers
408
views
Is this considered day trading, active management or something else?
I have been practicing with a few stock simulators for just over 1 year. My process for investing is to buy stocks when I see a significant drop in share price due to what seems like negative media ...
- 839
3
votes
3
answers
16k
views
How to start day-trading? Any advice about software for beginner? [closed]
I want to start day trading, but I am beginner and I need help.
Is there some online tutorial? I want to start with just 1000 dollar.
Is it enought? I find ninja trader software. Is it good? Or do you
...
- 33
3
votes
3
answers
4k
views
Can a broker refuse to place my limit-orders?
I've got an interesting situation. A few weeks ago I found this company trading on the TSX Venture at about $6 with a rather decent market cap however, the daily volume on the stock was fluctuating ...
- 41
3
votes
1
answer
13k
views
Does the pattern day trader rule apply to non-US citizens?
The Securities and Exchange Commission website says:
FINRA rules define a “pattern day trader” as any customer who executes four or more “day trades” within five business days, provided that the ...
- 131
3
votes
1
answer
829
views
Confusion/Misunderstanding over the maker/taker fee mechanism
Sorry if this question is noobish. I thought I had the maker/taker fee mechanism figured out (already existing question at Maker taker fees - can somebody explain in plain english?); apparently I was ...
- 291
3
votes
3
answers
1k
views
Backtesting daytrading strategy, how to handle the spread?
I am currently developing a daytrading application which based on rules and algorithms buys or sells stocks, which right now might buy/sell a stock in the magnitude of 100 per day.
I am trying to ...
- 133
2
votes
4
answers
10k
views
Can individuals day-trade stocks using High-Frequency Trading (HFT)?
It seems that all the big trading firms out there use High-Frequency Trading (HFT) to make their transactions and maximize returns from portfolio investments. I was wondering if it is possible for ...
- 147
2
votes
4
answers
7k
views
How to explain quick price changes early in the morning
I don't have much experience trading and wonder why there was a large change just when the market opened. I daytraded my portfolio and started only recently. As expected, in the morning when the ...
2
votes
1
answer
154
views
Whats the penalty for withdrawing from my Roth IRA when I day trade with it? [duplicate]
I have 12K in my Roth IRA. I use it to day trade. Now I want to take out the 12K what is my penalty? And do I get taxed on my trades when I buy and sell?
- 2,025
2
votes
5
answers
2k
views
Is day trading still profitable in 2020?
I'm interested in day trading and want to start educating myself, but I'm a bit concerned regarding AI and automated trading where humans trade vs. computer programs and have no chance at all - I'm ...
- 129
2
votes
2
answers
5k
views
Pattern Day Trade - $25,000 Margin Account Rule
I am kind of new to day trading stocks. I was just a bit confused regarding the pattern day trade rule which prevents people with under $25,000 to exceed 3 day trades per week.
Does the $25,000 have ...
- 23
2
votes
3
answers
21k
views
Best way to day trade with under $25,000
I recently learned that the pattern day trader rule will keep me from day trading stocks because I have less than $25,000. I found out it only applies to margin accounts so I figured I'd be fine just ...
- 175
2
votes
2
answers
2k
views
Wash sale rules in India (NSE/BSE)
Is there any tax law prohibiting losses booked due to wash sales rule in Indian market?
e.g. If I buy a Sun Pharm stock at 634. After 10 days, I sold it at 609.25 and buy again at 608.75 in the same ...
- 121
2
votes
1
answer
924
views
Will this trading activity flag my account as PDT (Pattern Day Trader)?
I've read several definitions of PDT and I think I get the gist regarding round trips.
But just to be certain, I'd like to offer an absurd/contrived example...
Monday (9:31 AM) : Buy 100 shares of ...
- 31
2
votes
1
answer
125
views
How is an ETF fee calculated in a trade that ends in less than a year?
If you sell an ETF before a year, intraday or in a swing trade, then is the fee prorated or is that just the flat rate you pay when you sell, when you buy or does the broker pay it at some point in ...
- 151
2
votes
2
answers
2k
views
"Day trade buying power" versus "Available to day trade"
on my Charles Schwab account I have 2 different fields:
Day Trade Buying Power: $50,000
Available to Day Trade: $203,000
Can someone explain the different between the 2? Day trade buying power is ...
- 2,003
2
votes
1
answer
1k
views
Are mutual funds allowed to trade intraday in india?
Are mutual funds allowed to trade intra-day in india?
- 121
2
votes
1
answer
593
views
Moving from Robinhood to TD Ameritrade: Can I use specific-lot-matching method?
I've been using both TD Ameritrade and Robinhood for a while. I just learned that on TD Ameritrade, you can use the specific-lot-matching method when you sell your shares.
It's in My Account -> ...
- 313
2
votes
1
answer
117
views
Can a day trading taxable income be more than the actual capital gain?
I've day-traded (in USA) actively during 2020, mostly short trades. Never kept positions overnight, so carried no positions into 2021 (and, similarly, no positions were carried from 2019 into 2020. ...
2
votes
4
answers
4k
views
TradingView and Thinkorswim have very different candlestick charts. Which one is correct?
I compared 30 minute candles for AAPL in two platforms: TradingView and Thinkorswim. I was astonished of the discrepancy. The differences are HUGE! Here are screenshots as of Sep 25 2020.
TradingView:
...
- 21
2
votes
1
answer
681
views
Pattern day trading, margin, and day trade buying power
I have some questions regarding the rules surrounding pattern day trading, margin, and day trade buying power and how they interact with each other. Assume to following scenario:
The account is a ...
- 23
2
votes
1
answer
507
views
Am I considered to be a day trader if I only trade with settled funds?
I am trying to avoid the pattern day trader rule. I have $20,000 in a cash account, and the money is settled funds. To follow the T+3 rule, I plan to trade only $4,000 a day in order to have enough ...
- 23
2
votes
1
answer
397
views
Theoretical Margin Trading Questions
I am just educating myself on margin trading (I have no real desire to try it any time soon) and was wondering if you may help me with a scenario and a few basic questions to see if my logic is ...
- 381
2
votes
1
answer
149
views
Does one stock market buy order that fills through multiple executions count as one trade for PDT rule?
Scenario: you place one stock market order to buy 1000 shares. The order ends up needing multiple executions to get completely filled: 200 shares, 300 shares, 400 shares, 99 shares, and then 1 share. ...
- 131
2
votes
1
answer
79
views
Calculating an accelerating rate of growth as a formula
Suppose I start with a $1,000 trading account.
During each 30 day period my account earns $1,000 in net profit from a trading strategy using one contract per trade.
The max amount lost across any ...
- 245