Stock Trading and Other Things

Pattern Day Trading Rule?

I understand that a day trade is when you buy and sell the same stock during the same day (and that you can make 3 day trades in 5 days).

BUT: what about sell-buy? Can you sell and then buy back on the same day w/o being marked?

Example: I had ABC shares for several days/weeks/months. Now I feel that today is a good day to sell them (all or just some of them). So I sold at $10, but after that it dropped to $6. Can I buy back without making this a day trade?

Public Comments

1. A Day Trade is defined as not holding a position over night. You held your original position over night so buying it back on the day you closed that position is not a Day Trade. However, you might want to check into the Wash Rule before deciding if you want to buy it back.