Stock Trading and Other Things

I need some clarification on the 25k day trading limit?

My scottrade account shows the following:
Buying Power (Margin): $28,446.00
Buying Power (Non-Margin): $14,223.00
Total Money Balance: $14,223.62
Total Account Value: $14,223.62

So my question is do I have enough for the 25k day trading rule, or do I actually need 25k as my money balance, rather than just my margin buying power, which shows that I have enough in that case?
Balance Details

Public Comments

1. you probably need $25,000 in cash to get started and may have to maintain that balance - not margin buying ability - you are risking a lot of money doing what you are currently doing

2. if you get flagged as a pattern day trader ( you apparently aren't yet ) your account buying power will drop drastically. you will be restricted until your total account value is at least 25k ( you can deposit additional cash or securites) or perhaps until 90 (?) days have passed ( i dont remember if the passing of time in and of itself can get the flag cancelled). you can do SOME day trading
without getting flagged; search "pattern day trader" in Scottrade website online "help".

3. If you have $25,000 or more equity in your account you are fine. If you have less then you can not make more than 3 RT trades in a 5 business day period. Meaning buy and sell the same day more then 3 times in a 5 day period. Only applies to stocks, if you want to day trade trade futures markets, the ES or something similar is good.

4. Yes you can day trade since the $25,000 rule only applies if you are considered a pattern trader.

A pattern trader day trades the same security on the same four or more times in five business days, and the number of day trades are more than six percent of the customer's total trading activity for that same five-day period.

In your account,you have no market value (no positions) and only a cash balance. In a cash account you can buy for 100% of you cash account balance thus $14,234 balance = buying power of $14,223
Your equity in this account if $14,223

It appears you money (cash) is in a money market product, you could apply this balance to margin account and in doing so you can buy twice you credit balance. The rule is you can buy twice your S M A.
Your equity is still $14,233 and you can day

So yes you can day trade, but if you are tagged as a pattern trading your account must have a minimum equity of $25,000 at all times. (not a balance but equity - there is a big difference)

Remember equity = the market value of you positions + any credit balances (not from a short) and minus any debit balance.