How many times can you do it in one day? T+0 trading frequency limits and practical methods

The Core Question of Day Trading: How Many Times Can You Trade in a Day?

Many new traders engaging in day trading have this question—How many times can you do day trading in a day? The answer is: In theory, there is no limit, but in practice, it is constrained by multiple factors.

Taiwan’s stock market adopts a T+2 trading system, but through broker margin trading and securities lending mechanisms, investors can achieve T+0 trading (also known as Day Trading). Based on the practical operation since Taiwan stocks opened for spot day trading, as long as buying and selling are completed within the same trading day, it counts as one day trade. In theory, a trader can execute multiple buy and sell operations during the trading session—buy once in the morning, once at noon, once in the afternoon—without any limit on the number of trades.

However, the actual situation is far more complex than the theory.

The Real Limitations of Day Trading Frequency

Capital and Leverage Constraints

While the number of day trades itself is not limited, your available capital is the real bottleneck.

Spot day trading requires using your own funds for buying and selling. To perform multiple operations within a day, your capital must circulate quickly. After each transaction, funds need to settle within the same day (effectively offsetting buy and sell), so they can be used for the next trade.

Margin day trading involves borrowing funds or stocks from brokers (borrowing money or stocks), which amplifies trading capacity but also introduces risks. Borrowed funds have limits, usually linked to your credit account net worth and margin ratios. When your account equity declines, your available margin also shrinks, directly limiting subsequent trades.

Transaction Costs Erode Profits

The costs associated with frequent trading are often overlooked. Taking spot day trading as an example:

• Securities transaction tax: 0.15%
• Brokerage fee (buy and sell): 0.1425%

Adding these up, the total cost per trade is approximately 0.29%. If you make 5 trades in a day, costs accumulate to 1.45%. This means the stock price must rise by at least 1.45% just to break even. If market volatility isn’t large enough, frequent trading will simply eat up most of your profits.

The costs for margin day trading are even higher—securities transaction tax increases to 0.3%, plus interest on borrowed funds (average 0.08%), making multiple trades per day even more costly.

Psychological and Operational Rhythm Limitations

Limited focus during trading hours. Day trading requires traders to continuously monitor individual stocks, market trends, capital flows, and real-time news. Over a full trading day, mental fatigue accumulates. Most professional traders find that after 3 PM, judgment clearly declines, and continuing to trade at that point increases the likelihood of mistakes.

Market liquidity fluctuations. Taiwan stock trading volume shows significant changes at market open, around noon (12:00), and before close. During low-liquidity periods, you may find it difficult to buy or sell at desired prices, forcing you to accept unfavorable prices, which directly erodes profits.

Which Stocks Are Suitable for Day Trading?

Not all stocks are suitable for day trading. Currently, Taiwan Stock Exchange allows day trading on:

• Taiwan 50 Index components
• Mid-cap 100 Index components
• OTC 50 Index components
• Approximately 200 stocks in total

These stocks generally feature high liquidity and relatively stable intraday volatility, making them the preferred choices for day traders. Conversely, illiquid stocks with large price swings are not suitable—since you might face risks of being unable to close positions promptly.

Odd-lot stocks are completely unsuitable. They do not support margin trading and can only be sold the next day, making them incompatible with day trading.

The Actual Process of Day Trading

Spot Day Trading vs Margin Day Trading

Spot day trading operates with the simplest logic:

• Long position: buy in the morning → sell in the same day
• Short position: sell in the morning → buy back in the same day
• Account opening requirements: open account for at least 3 months, have at least 10 completed trades in the past year, and sign risk disclosure.

Margin day trading involves leveraging borrowed funds or stocks:

• Long position: margin buy + short sell
• Short position: short sell + margin buy
• Account opening requirements: open account for at least 3 months, have at least 10 completed trades in the past year, trading amount over NT$250,000 in the past year, and establish a margin account.

The latter requires higher qualification but offers leverage advantages.

Best Times for Day Trading

Not every time period during the trading day is suitable for day trading:

Opening hours (9:15–10:00): The market just opened, trading volume surges, and individual stock volatility is high. It’s a good time to seek quick profits but also the riskiest for misjudgments.

Midday (11:00–14:00): Trading volume stabilizes, volatility is moderate, suitable for experienced traders to perform precise operations.

Closing hours (14:30–15:00): Many institutional investors and large traders rebalance positions, increasing volatility and opportunities, but also risks.

Major news releases: Although volatility is highest, risks are hardest to control, so it’s not recommended for beginners.

Day Trading vs Other Same-Day Trading Tools

If you want to truly execute intra-day trades, besides spot and margin day trading, there are other options.

Futures Trading

Futures are inherently T+0 instruments, allowing buy and sell at any time. Usually traded on futures exchanges, with high leverage (often requiring tens of thousands of dollars in margin), very low transaction taxes (0.02% of 100,000), and about NT$30 per trade.

However, 96% of futures market participants are speculators, with concentrated risks and high volatility, making it unsuitable for traders lacking strong psychological resilience.

Options Trading

Options are also naturally T+0 instruments, characterized by paying a small premium (a few thousand NT$) to start trading. Transaction taxes and fees are cheaper than futures. But options have asymmetric profit and loss profiles, making them psychologically more challenging.

Contracts for Difference (CFD)

CFD is an over-the-counter contract with brokers, allowing trading in forex, gold, stock indices, individual stocks, oil, and even cryptocurrencies. Account opening is very easy (tens to hundreds of dollars), fully T+0, with flexible leverage. But risks are huge, and since it’s OTC, liquidity depends entirely on the counterparty (broker).

Advantages and Traps of Day Trading

Attractive Advantages

1. Exit within the day, timely stop-loss
Traditional stock trading requires waiting until the next day to sell, risking overnight gaps. Day trading allows closing positions within the same day, making risk more controllable.

2. Day trading without inherent leverage
Some day trades are essentially “buy and sell the same amount,” with a leverage ratio of 1x, technically low-risk—provided you have sufficient funds.

3. Avoid overnight holding risks
Without upcoming economic data releases, earnings seasons, or geopolitical surprises, overnight positions face gap risks. Day trading completes all trades during market hours, naturally avoiding these risks.

Commonly Overlooked Traps

1. Leverage trap
Many are attracted by “no capital needed” day trading, but it’s essentially using financial leverage. Leverage amplifies gains but also losses. When the market moves against you, losses can accelerate rapidly, potentially leading to margin calls or huge debts.

2. Overconfidence and excessive trading
Short-term volatility is limited, but transaction costs are fixed. The more you trade, the higher the cumulative costs. Without a stable profit logic, frequent trading will eventually erode all profits.

3. Holding risk due to price movements
What seems simple—“complete within the day”—can be disrupted in practice. If stocks bought in the morning do not reach expected prices by afternoon, traders face dilemmas: cut losses and exit (realize losses), or hold overnight (become overnight positions).

4. Time cost during trading hours
Day trading requires watching the market all day; leaving your seat for long periods is almost impossible. For office workers, it’s nearly infeasible; professional traders risk long-term fatigue leading to judgment errors.

Clarifying Common Myths About Day Trading

Q: Is it really unlimited trades per day?

A: In theory, yes, but in practice, constrained by capital, costs, liquidity, and psychology. Most professional traders limit themselves to 3–5 trades per day.

Q: Can all stocks be day traded?

A: No. Only about 200 stocks including Taiwan 50, Mid-cap 100, and OTC 50 components. Odd-lot stocks are completely unsuitable for day trading.

Q: Should beginners start with which type of day trading?

A: It’s recommended to start with spot day trading—the simplest operation, lower costs, and easier risk control. After gaining experience, consider margin day trading.

Q: Are there restrictions on US stock day trading?

A: Yes. The US has the “Pattern Day Trading” rule. Accounts with less than $25,000 can make no more than 3 day trades within 5 business days; accounts exceeding this amount can trade freely. Accounts below the threshold are frozen for 90 days.

Summary: Who Is Day Trading For?

Day trading suits traders with short-term thinking, quick market reactions, sufficient capital, stable psychology, and the ability to monitor markets all day. If you’re just chasing quick profits, lack funds, or are easily emotional, day trading may quickly lead to losses.

Even if you meet these conditions, remember: Quality matters more than quantity. It’s better to do 2–3 high-probability trades per day than to chase high frequency blindly. Cost control and risk management are always the core of day trading; frequency is just superficial.