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Penny Stocks and Day Trading

Sebo said: "I would like some reconfirmation on the concept of day trading. i have become aware that you need a minimum of $25000 in your account to day trade. Would that be before you trade a stock or do you need it there at all times. Also, lets say for example: I purchased a stock in the morning at 1.30 and it happened to reach 1.50 at noon. If i bought 10,000 of these stocks in the morning and i seen a pretty big gain from this. Would i be allowed to sell it the same day for profit? Or would this be considered day trading and i would need $25000 in my account to do so? Last of all, are we allowed to purchase 10,000 stocks from such a low-priced stock? How much quantity of these low-priced stock do you guys buy on average? Thanks in advance Sebastian"

Rbreb13 said: "You can daytrade with less than $25k. You're limited though, to 3 trades in a 5 day period. Do you could buy & sell on Mon., Tues. and Wed. but don't trade on Thur/Fri. unless you hold them overnite then the daytrade rules don't count. If shares are available you could buy 1,000,000 or more of a stock. The only limit is how much money you have and if you're willing to pay more for it. As I said in your other thread, volume is something you have to watch. Buying 10,000 shares of a stock that only trades on average 30k/day would be suicide unless you knew something nobody else did. Your buy would move the price up and when you try to sell it would tank the price. I still say 1-2% of the average daily volume is what I try to stick with."

Sebo said: "great advice again :D. Thank you very much."