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AleishaCle
08-31-2016,
Is this a Good faith violation?

On Monday morning, Cash available to trade = $20,000.00

On Monday morning, customer buys XYZ stock for $10,000.
Later, on the same day, customer sells XYZ stock netting $10,500 in cash account proceeds.
Later, on the same day, customer buys ABC stock for $20,000.
Later, on the same day, customer sells ABC stock netting $20,500 in cash account proceeds.
(Now, Cash available to trade = $21,000.00)
Later, on the same day, customer buys ABC stock again for $20,000.
Later, on the same day, customer sells ABC stock netting $20,500 in cash account proceeds.
(Now, Cash available to trade = $21,500.00)

AlfredKa
08-31-2016,
Some of the others might answer your question as I am a little confused by it. First right off, you are not going to be able to spend 10k and make 500 off of it in one day. I can spend 120k and make 500 off of it as I have done that 3 or 4 times a day here.

AlexDijk
09-01-2016,
What you're doing is daytrading. If you're in the U.S., then you're done trading for the entire week, because one more trade and you'll have broken the law. Why? Only 3 daytrades are allowed in a five-day rolling period unless you have more than $25k cash.

Also, if you happen to have a cash-only account (and I don't know why you would if you have $20k to spend), then you're also guilty of free-riding which is an additional big no-no.

Aliciaet
09-02-2016,
Brings up two question. (1) Why, with computers that your broker is using, would you even be able to do this. Looks like your order would be kicked out with an explanation as to why. (2) I have never seen my margin account go to zero s o I assume that I have money in my account.

alisavb69
09-02-2016,
Ken you have me curious. I will admit I still have things to learn and the good things, I am making money. Here are my balances at the end of this week.

Trading & Cash Balances
Day Trading Buying Power $944,085.72
Buying Power: Marginable Investments $420,620.00
Buying Power: Non-Marginable Investments $210,310.00
Cash Available for Withdrawal Without Margin Loan* $22,164.76
Total Cash Balance $132,452.26
PositionsStocks,
Mutual Funds, CDs & Bonds Market Value $149,172.17
Options Market Value $0.00
Total Positions Market Value $149,172.17
Scottrade Account Totals
Total Brokerage Account Value (Positions + Cash Balances)$281,624.43

This weeks stock purchases were -152,433.75 All stock was purchased and sold the same day, nothing held over to the next day.
Stocks profits were around 640.00 dollars 1,280.o0 for the month to date. This shows 22,164.76 cash still left and this will grow as the trades settle. If I go below this my margin kicks in?

admin
09-03-2016,
In the US as was stated you have to have a minimum of $25,000 in your account to be a day trader. As a day trader you can trade up to four times the maintenance margin excess in the account as of the close of business of the previous day, go over and you're in trouble and will recieve a margin call even if you are flat and have all cash in your account.

In response to your poll, it is a violation, but you are expected to know the rules so it is not a 'good faith violation' just a violation.