Explaining the Pattern Day Trader (PDT) Rule: A Guide for Day Trading Small Accounts and Navigating its Restrictions

Get my FREE Trading Journal +Weekly Watchlist: 🔽Time stamps: 1:19 What is Pattern Day Trader Rule (PDT rule) 2:50 Open cash accounts to trade instead of margin accounts 6:30 Open multiple margin accounts to day trade 7:54 Open offshore trading account to avoid PDT rule 9:40 Buy and swing stock overnight Trade with me: PDT Rule - Pattern Day Trader Rule: Day Traders with an account under $25,000 can only day trade 3 times within a consecutive 5 day period, if they're trading a margin account in a US based brokerage. Four Options to get around the Pattern Day Trader Rule 1. Open a cash account to day trade Since PDT rule only applies to margin trading accounts, you can open cash accounts to trade with no day trade limitations. The downside is that you cannot short sell stocks in a cash account. And the cash will take 2 days to settle. 2. Open multiple margin accounts to day trade If you divide your capital into multiple margin accounts, you can have more day trades. 3. Open an offshore trading account This option isn't recommended but offshore brokers like Trade Zero International and CMEG do not have the PDT rule limiations for day traders with a small account 4. Buy and swing trades overnight When to Buy Stocks Overnight? How to Grow a Small Trading Account Under PDT 📉My Trading Broker Platforms: TradeZero: -Get 3 months FREE platform + 1 Month 10% off short locates Centerpoint Securities ($30K min): -Get 50% off Commissions & Short locates for 60 days -Get 6 months FREE Trade Ideas scanner Interactive Brokers: Interactive Brokers Canada: 🖥️My Stock Scanners & News feed: Benzinga Pro FREE 14 day trial (use code "HUMBLEDTRADER" to get 25% Off ) Trade Ideas Scanner (use code "HUMBLED15" to get 15% Off) ✅My REAL Social Accounts: IG: TikTok: Twitter: FB: ___ DISCLAIMER: I am not a financial adviser nor a CPA. These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. AFFILIATE DISCLOSURE: I only recommend products and services I truly believe in and use myself. Some of the links on this webpage are affiliate links, meaning, at no additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. Commissions earned will be used towards growing this channel. Humbled Trader FAM count: 194,200...(read more)

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How to Get Around the PDT Rule Day Trading Small Account (Pattern Day Trader Rule Explained) Day trading can be an exciting and potentially lucrative endeavor, but for those with small trading accounts, it can be challenging due to the Pattern Day Trader (PDT) rule. The PDT rule is a regulation put in place by the U.S. Securities and Exchange Commission (SEC) that restricts pattern day trading for traders with accounts under $25,000. This rule can limit the number of trades a trader can make within a specified time frame, making it difficult for small account holders to fully capitalize on trading opportunities. However, there are a few strategies and alternatives to consider when trying to get around the PDT rule. 1. Focus on swing trading: Instead of day trading, consider swing trading where trades are held for a longer period, usually a few days to a few weeks. Swing trading does not fall under the PDT rule's restrictions, making it a viable option for small account holders. 2. Trade with a cash account: The PDT rule applies only to margin accounts, not cash accounts. By trading with a cash account, traders can avoid the limitations imposed by the PDT rule. However, it is important to note that with a cash account, one cannot utilize leverage and can only trade available funds. 3. Build up your account: If you are determined to day trade and want to get around the PDT rule, the best approach may be to increase your account balance above $25,000. This will allow you to trade freely without restrictions. You can achieve this by adding additional funds to your account or by growing your account through profitable trades over time. 4. Trade with a prop firm: Proprietary trading firms, also known as prop firms, are popular options for small account holders who want to day trade without being subject to the PDT rule. Prop firms provide traders with the required capital to trade, allowing them to bypass the $25,000 account balance rule. However, it is essential to carefully research and choose a reputable prop firm, as they typically charge fees or require a portion of the profits in return for their services. 5. Diversify into other markets: If you have reached the limit of day trades in the stock market, consider exploring other markets like forex or futures trading. These markets have different rules and regulations and may provide opportunities for additional trades without being subjected to the PDT rule. 6. Educate yourself and implement different strategies: The more you know, the better equipped you will be to make strategic trades. Day trading is not solely based on the number of trades but also on the quality of trades. By learning and implementing different trading strategies, you can maximize the profit potential of each trade, even with the limitations imposed by the PDT rule. In conclusion, the PDT rule can present challenges for small account holders looking to engage in day trading. However, with careful planning, alternative trading strategies, and consideration of different trading options, traders can navigate around the PDT rule and continue to pursue profitable trading opportunities. Remember to be patient and focus on long-term growth, as building up your account size can eventually allow you to trade freely without restrictions. https://inflationprotection.org/explaining-the-pattern-day-trader-pdt-rule-a-guide-for-day-trading-small-accounts-and-navigating-its-restrictions/?feed_id=118140&_unique_id=64b4d8ad754e9 #Inflation #Retirement #GoldIRA #Wealth #Investing #daytradingforbeginners2020 #daytradingsmallaccount #gettingaroundPDTruledaytrading #howtodaytradeunderPDTrule #howtogetaroundpatterndaytraderule #howtogetaroundpdtrule #howtogrowsmallaccountdaytrading2020 #howtolearndaytradingasabeginner2020 #howtostartdaytradingin2020 #patterndaytraderruleexplained #pdtrulecanada #pdtruledaytrading #pdtruleexplained #rickygutierrez #timsykes #warriortrading #whatispdtrule #FidelityIRA #daytradingforbeginners2020 #daytradingsmallaccount #gettingaroundPDTruledaytrading #howtodaytradeunderPDTrule #howtogetaroundpatterndaytraderule #howtogetaroundpdtrule #howtogrowsmallaccountdaytrading2020 #howtolearndaytradingasabeginner2020 #howtostartdaytradingin2020 #patterndaytraderruleexplained #pdtrulecanada #pdtruledaytrading #pdtruleexplained #rickygutierrez #timsykes #warriortrading #whatispdtrule