Pattern Day Trading

You’re not normally a rule-breaker. But violating the pattern day trader rule is easier to do than you might suppose, especially during a time of high market volatility. Don’t let this happen to you. Here’s what you need to know. First, a hypothetical. Suppose you buy several stocks in your margin account. Minutes or hours later, you change your mind about a few of your purchases, so you sell them. Your “round trip” (buy and sell) trades all took place on the same trading day. If you execute four or…