How to Get Around the PDT Rule Day Trading Small Account (Pattern Day Trader Rule Explained)

🔽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

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
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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. You must conduct your own research. I am sharing my opinion with no guarantee of investment gains or losses.

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Humbled Trader FAM count: 194,200

[dietmarstahl]

Finra PDT rule is discrimination. While large scale traders are allowed to day trade small investors are don't. Therefore Finras PDT rule is completely illegal. All traders should file a class action rule against Finra for this discriminatory rule!!!!

[sigmagx]

this woman is giving it all away. The knowledge that is, glad there is no pay wall... bless you lady

[jayding]

Ways to get around PDT rule:
- Use a cash account
-Open mutiple margin accounts
-Open accounts with offshore brokers
-Buy and swing overnight
Tips:
- Keep track of your day trades
-Do not force trades
-Never turn a losing day trade into a swing trade

[tallyjbud]

After a month of beginner research, this woman just answered so many questions!

[juliaamber]

The PDT rule is so damn annoying, I am never going to make that Lamborghini money. I have been trading for only 2 or 3 months and not doing bad at all but I'm far from $25k. Maybe one day I will get there. I love your videos and your sense of humor. I have learned a lot from your videos, thanks!

[duomo]

It only applies to *Margin* accounts, not cash accounts. Margin accounts allows an investor to borrow against the value of the assets in the account to buy new positions or sell short.
If you have a cash account the PDT rule doesn’t apply. If you don’t have the funds to cover your potential losses than the brokerage has to protect itself with this rule.

For all the people saying this rule is wild, it makes complete sense to me.

[pediclescrew]

Great video, Humbled Trader. For the viewers, you can also bypass the PDT rule by trading futures, such as the e-mini S&P. No PDT rule there!

[KaturaYT]

Out of all the traders I've watched on YouTube, your videos by far have helped me the most! I'm a very new trader but just had my first successful quick day trade using your techniques. I originally started out my trading journey by following people on Twitter and I got burned almost every time. Still learned a lot from it and hadn't invested too much, thankfully. And it gave me the fire to study and learn as much as possible so I'm only relying on myself when it comes to trades. Your videos are what gave me the confidence and knowledge to do so. I know this is just the first of many successful trades because of your help. Thank you so much for sharing your knowledge!!

[TiffanyTradesOptions]

I have PDT in one of my accounts, but I learned after a while day trading is not my strong suit so I went back to swing trading. Thanks for the super helpful and detailed video!

[briankaskie]

I have etrade account that started with $1k and grown to $3k in 3 months with your help. And using CASH available is ONLY and BEST way. I check every morning to see what is "Cash Available for withdrawal" and that is budget for day. Small trades with small losses and gains. Thank you for teaching!

[frankwilliamson]

To bypass PDT I recently started trading mini futures. Its working well for me. No PDT plus easy trading before and after hours (within risk/ reward criteria reason of course)

[micayahblackman]

Also I actually think I'll still trade under PDT. I broke the violation once because I did not know it even existed or how it works so thank you for making it much easier to understand. I'm trading at a slow pace just so I understand everything anyway so I think of PDT as more of a challenge now. I'm glad I understand it. Google did not answer my question and I was beginning to get scared of trading because I didn't want to violate again

[David-dsbm]

It's so good to see an authentic channel like yours exists. Wish it was around back in 2018 (would have saved me so much time back then lol) Overall though, I appreciate all the helpful content you are putting out - thank you Shay!

[danbohdan]

unfortunaly lots of newbies hate this rule but coming from a guy who has been trading over 6 years full time this rule saves lots of new folks who come to the market from overtrading. The main key to make money is to trade less.

[youluvmystyle]

I liked your personality before the first minute was over! Great info I really needed this! I was kicking a$$ then got this rule and slowed me down temporarily.

[kyonsmoto]

Omg what a timing! I was just searching for the information regarding the PDT. Thank you so much 😊

[michaeldelisieux]

Just BRILLIANT the way you transmit your message: Grace, precision and above all, sense of humor ( so necessary in these troubled times)!
Cheers!

[joshbrandt]

So weird you posted this. I've had 2 brokers for awhile now after I got hit with PDT on Robinhood. I'm currently in a cash account with TDameritrade and I just asked them today why I haven't had any PDT warnings. Your video helped explain a lot. I've been doing this for over a year now and i'm happy to have found your videos. keep up the good work!

[euovitoteu]

Yes, I am trading under the PDT rule and actually I think is a positive thing at the begining. It makes me think very well before entering a trade and even so I lost some money😬

[tosha.henriksen]

I will gladly say there’s really no one better than Sam Aryan