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Daytrading 4 Profit

Support and Resistance

 

support_resistance_basic

 

As stocks fluctuate from their intrinsic value, analysts identify price bands. Looking at the diagram above the line drawn is the support level, a resistance level indicates

→ An upper limit which signals the stock is hitting a peak and will start falling. It is a time to sell

→ A lower limit is called the support level where the stock is expected to bounce up from. This is where investors should start buying.

Daytrading Pattern Day Trader

Patter Day Trader Rule

January 26, 2016

 FINRA defines a Pattern Day Trader as “any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period”. Scottrade defines a pattern day trader as any customer who executes four or more day trades within five business days.

What is a Day Trade?
A. A day trade is the purchasing and selling or the selling short and purchasing to cover of the same security on the same day (including pre- and post-market) in a margin account except for:
a. A long security position held overnight and sold the next day prior to any new purchase of the same security, or
b. A short security position held overnight and purchased the next day prior to any new sale of the same security.

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