Government Wack-jobs
They always think they can control your life better than you and it’s no different in the markets. They have to stick their noses everywhere. This is going to be a short and sweet section that applies to residents of the U.S.A. only. If you are a resident of another country, you don’t need to worry about this section.
Many new traders come into the market and get pissed off to find out they can not trade like they want to, unless their account is $25,000 or more. At first, they are distraught and just give up. If they look, however, they can learn how to just get around this crap.
What, exactly, is this anal rule?
The pattern day trader rule, otherwise known as ‘PDT’ is some bull hooey our wonderful government came up with because they think they know more about protecting me than I do. This rule is the biggest bunch of nonsense but there are ways to get around it and day trade anyway. According to Wikipedia… Pattern day trader is a term defined by FINRA to describe a stock market trader who executes 4 (or more) day trades in 5 business days in a margin account, provided the number of day trades are more than six percent of the customer’s total trading activity for that same five-day period.
How to get around this Bull Hockey...
It’s a stupid rule but here is how you can shove it in their face and trade around this rule anyway.
- Trade stocks in a cash account, instead of a margin account. This way, you can day trade 47 times per minute, if you want to.
- Trade futures. The pattern day trader rule doesn’t apply to futures.
- Trade forex. The pattern day trader rule doesn’t apply to forex.
- Trade binary options. The pattern day trader rule doesn’t apply to binary options.
- Open up multiple brokerage accounts for margin stock accounts. This is somewhat of a hassle but it works.
- Trade for a prop firm. Trade their money, instead of yours.
- Trade Cryptocurrencies even on Saturday and Sunday!
