"Pattern" trader question.

[neverbeanother#7]

I am basically a p.m guy but have thought about dabbling in the market. According to the Nasd if you make 4 or more trades in a 5 business day period you are considered a "pattern" trader and must maintain $25,000 in equity.
Here's where i need the help. Is the 4 trades considered just 2 buys and 2 sells or would it be 4 round trip trades (4 buys and 4 sells of the same stock)?
Thanks

 

[DayTraderNation]

if you buy IBM on monday and close it later on that day or even the next day, that is one trade.

Buying it isnt one trade and selling it isnt trade #2.

If you dont have the 25k. Go to a prop firm. Most will let you in with 5k and others 10k.

The big difference is no insurance on your account with the prop firm. They go belly up, steal your money, your screwed in all honesty. Where as with a retail acocunt and the 25k minimum, you're insured.

Hope this helps.

 

[Donnybasbl]

Also, this is for margin accounts only. If you maintain a cash account, the PTD rules don't apply. But then you wouldn't be able to short stocks and your cash would be tied up until trades settle each day.