I had an order and bought 8 shares at a certain price, then I had put in order by the end of the day to sell at a higher price through a limit sell , so I placed an order. today which is the next day 3 hours into the market I sold my shares and executed my order. Is that still considered a day trade? or swing trade? I ask because this will be considered my 3rd day trade in 5 business days for robinhood trade app and I don't want to be labeled a pattern day trader.
If i am understanding what you wrote correctly - sounds like you bought xyz stock yesterday & it didn't hit your limit price until this morning which makes that a swing trade. Day trades are done in the same day - swing trades are overnight holds for 1, 2 3 days or weeks etc.
I have another question sir, can I do 3 day trades and I have another question sir, i understand that you can only do 3 day trades in 5 business days, can i do a 4th buy and let my money grow until I can start trading again? or do you suggest doing a swing trade after i hit my day trade limit.thank you for your time
first off - am female We all have our own trading styles so really cannot answer this question for you. If you don't have the $ for day trading account then can only do 3 day trades within 5 day period so if you have extra money & are confident that swing trade (s) will work in your favor then will off-set the waiting period until day trade (s) open back up and or you can just wait for the day trades to clear.
My 2 cents: If you open a position (long or short) and close it in the same day that is a day trade. You can have 3 day-trades in any 5-day period. After having 3 day-trades in a 5-day period and you open a 4th position and you determine you made some sort of mistake or bad trade and it goes against you, you can close it the same day of course, and you will probably just get a warning from your broker. Focused asked: "...i understand that you can only do 3 day trades in 5 business days, can i do a 4th buy and let my money grow until I can start trading again?..." Yes, of course you can do a 4th buy. Your "money" won't grow because you just exchanged it for stock certificates. Whether the stock value will grow is a matter of speculation. "...or do you suggest doing a swing trade after i hit my day trade limit.thank you for your time " Yes, sure, or a position trade...anything but a planned day-trade if you want to avoid getting warnings or an eventual demand from your broker to increase your account balance to $25k.
