What exactly is day trading? Please answer..?

What exactly is day trading?

Are you classified as a daytrader if you buy/sell a particular security (Google stock) 3 times in 5 business days? If you buy Google stock three times in one day, will that flag you as a daytrader? Or as long as you don't do a combination of buy/sell for three times in 5 days will not flag you as a daytrader?

Are you classified as a daytrader if:

Monday: buy Google, Verizon, Apple and JP Morgan Chase stock and sell Google
Tuesday: buy McDonalds stock
Wednesday: buy Nike stock
Thursday: buy Adidas stock and sell Adidas on the same day
Friday: buy Bank of America stock and sell Bank of America on the same day

Buying 8 stocks (different companies/different securities) in 5 business days...will that classify you as a daytrader? Or will buying 8 stocks of the same company (same security) in 5 business days will classify you as a daytrader?

What if you buy Google, Adidas and Bank of America in 5 days and sell it within 5 days? That would mean 3 times of buying the same security?

I'm confused and want to make sure I don't get flagged as a daytrader by the brokerage firm.

Thanks!

Public Comments

1. 1) Daytrading is buying and selling a stock within the same day.
2) I believe being classified as a daytrader by your brokerage would involve doing 4 or more daytrades within five consecutive business days.
3) If your account balance is less than $25,000, you may not allowed to do any more daytrades for 5 days.
4) Talk to your firm for more precise info.

2. I would highly recommend staying away from daytrading. You will get some quick gains, but overall it will wipe you out,jmo.
It's usually trading the same company security 3 times a day. Different platforms pick it up differently. If you have a margin account your fine.
Not just three buys. it's three round trip trades, buy and sell. Not just buy a couple times and only sell the collection once.
By looking at your daily trade schedule above, you will be fine.
Just remember if you get flagged, shut down account and open with another firm.