Pattern Day Trader Examples | Forever Winning Trade Inc.

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Pattern Day Trader Scenarios

Review the pattern day trader examples below. Our scenarios cover cases involving assets over and under $25,000.

Pattern Day Trader Scenarios

Scenario 1 : Assets over $25,000

Mia has $30,000 in her margin account. Her trading activities for the past week are as follows:

Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Buy ABC Sell ABC	Buy ABC	Sell ABC	Buy XYZ Sell XYZ	Buy ABC Sell ABC
				Short Sell XYZ Buy to Cover XYZ

> She became a pattern day trader because she did 4 (more than 3) day trades in 5 business days. But since she has over $25,000 in her margin account, being listed as a pattern day trader will not influence her trading privileges as long as her account value remains above $25,000.

Scenario 2 : Assets under $25,000

Jeff has $20,000 in his margin account. His trading activities for the past week are as follows:

Monday 1/1	Tuesday 1/2	Wednesday 1/3	Thursday 1/4	Friday 1/5	Saturday	Sunday
	Buy ABC	Sell ABC	Buy XYZ Sell XYZ	Short Sell XYZ Buy to Cover XYZ

Monday 1/8	Tuesday 1/9	Wednesday 1/10	Thursday 1/11	Friday 1/12	Saturday	Sunday
Sell XYZ	Buy ABC	Sell Short ABC
Buy XYZ	Sell ABC	Buy to Cover ABC

> He became a pattern day trader because he did 4 (more than 3) day trades in 5 business days. Since his account has less than $25,000 in assets, he can no longer do day trades until he deposits more funds to his account in order to maintain a total account value of over $25,000.

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