Are there rules for day trading?

I just recently started playing around with the stock market and i remember hearing something about restrictions on day trading. What are they and do they apply to everyone or just professional traders?

Public Comments

1. For the stock market, you must have 25 K in your account. This allows you to have unlimited trades. If you don't have 25 K, then your broker won't allow any further activity if you have something like 3 daytrades in a five day period. This amt is set by the gov and the only way a US cit can get around it is by having an offshore acct.

In the futures markets there are no such restrictions. You can have a small amt of money in your acct, depending on miniumums set by your broker, and the number of daytrades is unrestricted.

2. The rules are dependent upon what you are trading.

3. http://www.sec.gov/answers/daytrading.htm

http://www.finra.org/Investors/SmartInvesting/AdvancedInvesting/DayTrading/p005906

4. I feel this is one of the most important rules that a day trader should learn. There is no rule of thumb as to how a day trader should limit his or her losses, but there are basic steps that can be followed. I think that one of the main reasons people lose money in day trading is because they do not limit their losses.

There are some more great rules in the http://www.geocities.com/daytradingtutor/daytrading-facts.htm

Have a look at it.

Regards