stock trading question?

(ive been paper trading) I'm so confused about the whole margin thing and $5 rule thing and trade+3days thing....I posted a question on here before but then I forgot to mention some things. I am planning on using scottrade. I only trade a certain way. I will only have $2,00 to start out with to open up a margin account. Most of the stocks I buy are priced under $5, I buy in the late afternoon and sell the next morning, and I only want a margain accout for bridging/padding the trade plus 3 days rule....most of the stocks that i can manage to make money on are mostly priced under $5...I want to trade 5 days a week...with $2,000 in a margin account...can I do this? Again I only want the margin account for "padding"...but the stocks are priced under $5....

Public Comments

1. Yes, you can do this as you're holding the positions overnight.

Even a "regular" margin account will insulate you from the trade+3day situation. The fact that the stocks are under $5, or anything else that influences their marginability, should make no difference as long as you don't purchase more than your account value's worth of the shares.

(FYI, "intraday" would be if you bought and sold the shares the same day. If you did that "four or more times in any five consecutive business day period", then they would require that you have $25000 in the account; but since you're holding overnight, this is irrelevant.)