The Pattern Day Trader Rule & How to Avoid It

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DISCLAIMER:
This video is for entertainment purposes only. I am not in any way acting as an agent or representative of the Department of Defense or United States Federal Government when presenting this information. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video.

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[tswvzos]

LOVE your video instructions! It's very well explained and thank you very much.

[justinh.]

Just got hit with the PDT Friday and was freaking out because I didn’t know what it was. LOVE your informative videos man! Thanks so much for putting this out and helping me better understand! Definitely gotta open up a Webull account and fund my Fidelity brokerage account. 😂

[ChocolateBear]

These video have been key for me over the last few weeks. You rock thank you

[eymimoloro]

Hey, greetings from Dominican Republic! Great channel, always sharing useful information!

[simonzhang]

Actually, there is one additional way to go around — the rule also says that the amount of day trading must exceed 6% of your overall trading activity over the 5-day period. So if you do trade A LOT so much so that your day trades only constitute fewer than 6% of your trading activities, then you are also good to go. 🎉

[davidqi]

Always enjoy your videos about knowledge and solutions. Please keep the good work! Thank you 🎉

[Zakram]

You explained PDT rules better than anyone i am glad i accidently bumped into your post and i did subscribe also and watch other videos .... Thanks

[JacksonWelch]

Hey Jake one thing to update is the PDT rule does NOT apply to crypto. For example if you have $25, 500 in a brokerage but then you buy say $1, 000 of a crypto, you now have $24, 500 of assets that count towards the PDT rule and will fall under that threshold.

[leejmuam]

Jake, love your contents and you are so kind, answering a lot of questions in the comments. I found all the answers to my questions without asking.

[mikebarnes]

If you go the foreign brokerage route don't forget that if you ever have more than $10, 000 with them you will need to file a FinCen Form 114 to report this to the U.S. Treasury Department. This is a separate filing apart from your tax return. Your tax return will also have to have a question at the bottom of Schedule B answered Yes - many tax programs default to answering this no. If you have very large foreign brokerage account you might also need to include a Form 8938 with your tax return (the exact threshold will vary based on your individual circumstances). The penalties for not handling these matters correctly can be VERY large (potentially draconianly) and these requirements may not seem intuitive to the average person.

[joeykim]

The PDT got me when I first started investing... kinda sad

[Phelliety]

If you buy a stock, sell it, then buy the same stock and sell it again same day, is it considered 2 trades?

[alejandrocardona]

Thank you, I was about to make the same mistake twice

[maxxcarbon]

Just started a Demo account this morning just to practice and it wouldn’t even let me close any more trades after I sold 3. Just learned that this is why. Man I thought I was killin it! Wat a bummer. Somethings always in my way. Should’ve known it was too good to be true. Sounds too me like they don’t want the little guys making too much too fast. Customer protection yea right 🖕🏽

[slimpickinsworld]

Thanks for all the tips and knowledge, take care all the best success 2021, God bless you, your a good man. Respect from CANADA.

[AJohnson]

Honestly, if you want to trade you should only use a small percentage of your total net worth. Most people lose money anyway. If you don’t have 25k then you need to have a three to six month emergency fund then probably about 100k in an index fund in a separate account that you don’t touch. I would also swing trade and not day trade and I wouldn’t short stocks. Most people just shouldn’t trade at all.

[DOLPsc]

Really appreciate you taking the time to respond. i have to questions.
1) If i buy on Monday and then sell on Tuesday does count towards the PDT pEnalty? or does it need to be the same day?

2) I have 3 accounts with Fidelity. 401K, IRA, and Individual account. if the sum of these account are above 25k does the PDT rule apply to me?

[chrisg]

CASH ACCOUNT- simple
No need to worry about the PDT Rule

[thebigshot]

If/when your broker freezes your margin account - assuming that restricts your ability to trade with leverage?

[JacksonWelch]

Never knew about this rule. I just stick to buy and hold and don't mess with any day trading stuff. I don't feel I am better than those guys on Wall St. lol.