Trading 101: What is a ‘Day Trade’?

Trading 101: What is a ‘Day Trade’?

How to Avoid The Pattern Day Trader Rule –

Thanks to the government regulations, in 2001 the Pattern Day Trader Rule was introduced. The rule states that if you have less than $25,000 in your account, you can only have three day trades per five “rolling day” period. This brings up the logical question that many newer traders are left wondering “what exactly is a day trade?”. I talk about exactly that in detail.


Slack Key Traditions says:

In the third scenario, why would a broker not just get you all 500 shares all at once? Why would an order be only partially filled?

Stephanie Duventre says:

For example three, would it have only been 2 day trades if you only wanted 200 shares and the broker had to take from the first to enters? Just want to see if I’m grasping the concept

LampOfMagic says:

when does the rolling begin? at the buy or at the sell?

Ken Jondoe says:

Thanks Clay all your videos are helping me alot! Do you only do stocks or do you do real estate as well?

2clickswest says:

You know that you could very well be Michael Keaton’s stunt double?

christian ortiz says:

Hello there Clay i have a question so if you buy and sell 3 shares in the same day you wont be able buy shares for the next three days !? (Sorry im still a newbie in this and i really want to learn more since im still 18)

Imran Maken says:

Hi Clay, Can I have your email id. I have just started and have few questions I need to ask you. Thank you

Allen Arrosas says:

Hi clay. Just want to clarify. Is it you are only allowed 3 day trade per day or per week?

510MyTube says:

Damn clay thanks for the clearing up the rules day trades. Sucks the government implemented this rolling period.

Stoney says:

Do you need to sell every share you’ve bough that day or can they sit to be sold at a later date?

ibiscar06 says:

say I buy 400 then 300 and 300. I sell 200, then 100. would that be considered 1, 2, or 3 day trade?

Allison Padilla says:

Very helpful. Thanks!

Obiajulu Okadigbo says:

if your buying/shorting more than one stock…?? if i wanna trade ABC and XYZ…is that 2day trade? how does that work out…

thealphatube1 says:

Great Thanks.

tamar wolde says:

then How come I hear some people trade 20 times a day? In day trading?
Also what is the rule of being in Canada and trading in us platform?

Justin smith says:

Been watching quite a few of your 101 videos and just wanted to say THANK YOU for breaking it down so that newbies like myself understand what the hell this all means. Don’t stop!

neal larkins says:

Good Shyt…man…Clay you have answered a lot…just by using simple concepts.. #RosettaStoneoftrading

Damen Nyland says:

who applies this rule?

iboss416 says:

you helped me thanks man

Yasmeen Ahmed says:

Thanks a lot! ❤

Bryan Reynolds says:

I’m learning a lot from this channel..I seriously appreciate it!

SZGames222 says:

Assuming one only has $1,000 to day trade, they basically can’t be a day trader? 3 trades in one week won’t make worthwhile profits. Is your channel targeted towards people with upwards of $25,000+?

Chuck Finley says:

Wow that was an amazing intro into trading , clear and easy to follow Thank you for sharing your knowledge! I have a question regarding this lesson. If you were to buy 500 shares that would be your opening order , now if you sell 250 in the same day I understand that would be one day trade , so now what happens if you sell the remaining 250 shares the next day or some other time in the future? Would that just be considered a regular trade? I apologize if this is a silly question but I am just starting my education on trading I am a blank slate. Thanks again Clay!

_Jamison_ says:

I swear I have seen do more than 3 “opening transactions” in your live trade videos, am I mistaken? Or am I just missing something here?

Jeff Wilson says:

Thanks Clay very informative for a rookie like me. Please keep them coming.

benjamin tennyson says:

Is this day trade policy applied in other countries? or just in US. You’re videos are seen worldwide hahaha, so im just curious if it would be the same here in the Philippines once I started trading.

george Smith says:

When was this implemented? I am new and was watching live trading where they made multiple order. Anyone can answer please

Gladwin Joganathan says:

Great video Clay! Question is the pattern day trader rule only in effect in the US or globally? (i live in Canada)

tschuess9 says:

Hey Clay, I’m from Switzerland and I’m getting into trading. Do you know if the PDT-Rule also applies to Switzerland?

Big Balla says:

I believe it’s 4 days in a 5 day period.

Chelle P says:

HI Clay, I love your channel. I wanted to know was there any rule to purchasing as many times as I want as long as I’m not selling? Also are there any rules to purchase at any hour of the day, such as 7am or 10pm?

Spalll says:

Hi! Im planning to start day trading anytime soon, I have a budget of $500, what platform would u recommend? I cant work right now so Im thinking of giving this one a try.

rgz888 says:

thank you!

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