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.