My summer vacation started earlier than planned. Four weeks ago I was attempting to re-balance my portfolio as I have been doing every Friday for the past 6 months. While re-balancing, I unintentional opened and closed multiple positions within the same day and through out the week in effort to close positions I felt were not performing well and replace them with new positions.
"I purposely want to prove that a small account can be grown into a large account by managing a portfolio with a lot less discretionary trading."
That's all it took to be flagged by Interactive Brokers (IB) as a "Pattern Day Trader".
According to IB... a day trade is defined as a purchase and sale of a security (US and Non-US) within the same trading day. The FINRA and NYSE instituted regulations intended to limit the amount of trading that can be done in accounts with small amounts of capital, specifically accounts with less than 25,000 USD Net Liquidation Value. A Pattern Day Trader is someone who effects 4 or more day trades within a 5 business day period. You have violated these rules and are therefore subject to PDT restrictions.
Lesson learned when re-balancing my portfolio with a small account, I need to be mindful of how many "day trades" are being counted against me. The alternative would be to load my account with 25k to IB's delight. I purposely want to prove that a small account can be grown into a large account by managing a portfolio with a lot less discretionary trading. So, in the mean time, I will continue on with my vacation which has consisted of masked trips to Walmart & Home Depot and a lot of yard work. I hope you and your family stay safe and are able to enjoy the summer as much as possible.