Avoiding The PDT Rule || Growing A Small Account Under $25,000

In this video, I talk about a way around the PDT Rule.

The Pattern Day Trader Rule makes it difficult for traders under $25,000 to trade effectively. Whether you are just learning how to trade, or trying to save up enough money to be over $25,000, the journey to get over that mark is a tough one.

By day trading options, there is no such thing as PDT. You can take as many trades as you would like as long as you use the cash that is in your account. All funds will be cleared the next day, therefore it enables you to take as many trades a week without a restriction.

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[roz]

Thanks for the explanation. I'm not sure who wrote this law/rule but all it does is screw small investors and lock them into losing positions. Furthermore, if they are margin called on top of it you will be forced to sell at the absolute worst time and since this is computed with closing prices using a Put as a hedge won't help either.

[VV]

I appreciate the knowledge you provide.
Just to highlight something according to ISE, maximum number of day trades must not exceed 390 trades per day or a trade per minute since it will be flagged as a professional trading which is not allowed by number brokerage platforms

[dale]

Great video - I've explained this many times to people in different chats, i'll now point them to your video. ;o)

[dmitry]

Mistake in the video: cash accounts do not have PDT rule limitation of 3 day-trades in 5 business days. You can make unlimited amount of trades with settled cash in your account. But yes, it takes 2 days for cash to settle.

[TsunamiSurfaceWash]

This video has the best information on the PDT rule, thanks bro! Looking forward to the rest of your content

[hendersona]

Holly crap..I started reading and trading options...used only 100..and lost half cause I was scared to sell due to PDT rule...Thanks for this info!!

[NicoleByron]

just came cross the channel and have been binging. nice work my guy! subbed and excited for more.

[MichelJohnson]

Wow, I didn't know this. I thought the rule still applied to cash accounts, thank you.

[Sonnylintag]

There are so many bullshit videos showing people saying they are trading with $1000. Thank you for showing the truth. Alot of fake influencers showing fake trading, it makes me sick when they try to make it seem like you only need 1K.

[cottondai]

I didn't knew the exact details of this. Thank you brother.

[danielclayton]

A lot of the brokerage companies will not allow u to trade option unless u have a higher min. Td Ameritrade it's $5, 000

[ygtcbee]

TD have cought on to the Options trading and are now counting PDT trades on Equity options. The only way to Day trade is on futures and options on futures. On TD they charge $3 commission each futures contract for each direction. A buy 1 lot and sell cost $6 in and out. That's before exchange fee and slippage. Not a good idea

[akoito]

Wow I didn't know this one good thing I saw channel I'm getting a lot of information and learning a lot, Thanks. 😉

[derekalv]

Wow wasn’t aware that options cleared in T+1. Thanks for this

[KASUN_M]

Your content is superior to most trading explanations.

[christopherbeharry]

Just found your channel and I’ll be binging! Amazing Job Bro!

[LifeSugar]

Hey Carmine thanks for the video, it helped a lot. Btw, don’t know if I’m right or wrong here, but I believe that as long as you’re not on a Margin account, even cash accounts smaller than $25k in size are NOT subject to the PDT rule. I think the idea of the PDT is to limit the risk of borrowing money from the broker, but if you have a cash account that’s not a problem, even when trading equities and not options.

[deeeeeeps]

I started trading on March 1 2020...worse time ever to start trading. Kept my stack small until I saw the market come out of free fall. Did some serious grinding to get to $1300 on May 1. Traded option for the first time last week and made $1400. SOOOO happy to see all my cash and sweep turned into buying power every morning. This also gives you the power to wait for great deals on silver or gold mines/ETF's because every morning you have a full tank.

[rubendr]

You had opened my eyes and changed my life for the better. Thank you for this. I knew about the PDT rule but no that it was different for Options. Again thank you and I will refer anyone that I know to your channel. Keep up the great job!!!!

[juanitoboriqua]

Very informative video I didn't know about the pdt rule for options thank you