WestCoastWilson
08-10-2008, 08:59 PM
Hello Everyone,
Right now, I am trying to decide what broker company to do business with. So as I inch closer-and-closer to opening a broker account, I am still angry about the 3 trade per every 5 business day rule, because I want to do 4 trades per every 5 business days, but I do not want to be flagged as a ‘day trader’ (plus deal with the troubles that is guaranteed to come to me for being branded as a ‘day trader’). However I do not have 25K to keep in an account, nor do I want a Margin Account.
Now in review: If I buy ‘X’ amount of shares one day and then sell them all the next day, that still constitutes 2 trades in a 5 business day window. Yet if I buy ‘X’ amount of different shares either the same day that I sold the first ‘X’ amount of shares or buy some different shares the next day, basically I can not sell or buy any more shares until 5 business days later (because I would be at my 3 trade limit at that point). Is this correct? Yet I am STILL confused that if I buy shares one day and sell them the next day, then I would never have to worry about being branded as a ‘day trader’ as long as keep my shares overnight before selling them, yet the more that I read, it seems that unless I have 25K in my account, there is just no way to make more than 3 trades per every 5 business days (weather I keep my shares overnight and sell them the next day or not). GRRRRR!!!
Lastly, since I am Self Employed and have my own company (listed under a corporation), is it possible for me to open up an account (at one broker) using my business ID/tax ID number (instead of my social security number), and then also open up an account (at a different broker) using my social security number, thus allowing me to make my 4 trades per every 5 business days without being flagged as a ‘day trader’ or being caught and getting into even more trouble by the powers that be (if they find out that I am making 2 trades under my business account and 2 trades under my own social security number/personal account) every 5 business days? Also, for those that opened up a broker account under a business, did you have to provide your social security number as well?
Also, is it possible to be caught/get into any trouble by having 2 broker accounts at 2 different brokers or is your social security number linked to a bigger system out there (that is monitored 24/7 by the powers that be), so once they see that the same social security number comes up twice under different accounts at different brokers, they sound ALL of the bells and whistles, I get a knock on my front door, and then I get carted off to jail? LOL!!! Yet in all seriousness, what happens if you try to open and trade under two different broker accounts??? :confused:
Wilson
Right now, I am trying to decide what broker company to do business with. So as I inch closer-and-closer to opening a broker account, I am still angry about the 3 trade per every 5 business day rule, because I want to do 4 trades per every 5 business days, but I do not want to be flagged as a ‘day trader’ (plus deal with the troubles that is guaranteed to come to me for being branded as a ‘day trader’). However I do not have 25K to keep in an account, nor do I want a Margin Account.
Now in review: If I buy ‘X’ amount of shares one day and then sell them all the next day, that still constitutes 2 trades in a 5 business day window. Yet if I buy ‘X’ amount of different shares either the same day that I sold the first ‘X’ amount of shares or buy some different shares the next day, basically I can not sell or buy any more shares until 5 business days later (because I would be at my 3 trade limit at that point). Is this correct? Yet I am STILL confused that if I buy shares one day and sell them the next day, then I would never have to worry about being branded as a ‘day trader’ as long as keep my shares overnight before selling them, yet the more that I read, it seems that unless I have 25K in my account, there is just no way to make more than 3 trades per every 5 business days (weather I keep my shares overnight and sell them the next day or not). GRRRRR!!!
Lastly, since I am Self Employed and have my own company (listed under a corporation), is it possible for me to open up an account (at one broker) using my business ID/tax ID number (instead of my social security number), and then also open up an account (at a different broker) using my social security number, thus allowing me to make my 4 trades per every 5 business days without being flagged as a ‘day trader’ or being caught and getting into even more trouble by the powers that be (if they find out that I am making 2 trades under my business account and 2 trades under my own social security number/personal account) every 5 business days? Also, for those that opened up a broker account under a business, did you have to provide your social security number as well?
Also, is it possible to be caught/get into any trouble by having 2 broker accounts at 2 different brokers or is your social security number linked to a bigger system out there (that is monitored 24/7 by the powers that be), so once they see that the same social security number comes up twice under different accounts at different brokers, they sound ALL of the bells and whistles, I get a knock on my front door, and then I get carted off to jail? LOL!!! Yet in all seriousness, what happens if you try to open and trade under two different broker accounts??? :confused:
Wilson