Days like today are the reason why you want to make sure that you aren’t within the pattern day trade rule. Trading under PDT rule will make you want to destroy yourself. It is extremely hard for new traders since you only get 3 daytrades per week. Retail trading with below 25k is good in markets such as the one we experienced in january in which every morning you wake up to and including big gap up and your stocks go on huge runs. Then it doesn’t matter if you should hold overnight. However, as we just about all know this doesn’t very last forever. The market ultimately turns or begins to chop about, like today, and being able to daytrade is a huge advantage.
Being forced to support stocks makes you take big losses on down days and sometimes times you find yourself just churning your account between the two.. you go about big runs if your market is good and you also take big losses when the market is negative.. all thanks in your stupid broker not allowing you to sell when you need to. Trust me, I have already been there and determine what its like 1st hand. I used to share with kunal every evening that I was going to go blow in the local scottrade office since they were costing me a lot money by forcing me to keep stocks that I wanted to sell. So, one of the most important tips that I have for new traders would be to get out from underneath that routine day trade principle and trade BRACE firm. Prop trading permits accounts with as little as 5k to daytrade readily. Besides the PDT rule there are numerous other advantages to be able to trading prop firm for instance: competitive rates, being able for you to daytrade with as few as 5k, getting leverage, the ability to look and request difficult to borrow pants, and speed.