I’ve been a profitly forex trading-time daytrader since the beginning of 2012. I’ve learned a lot along the way from my successes and failures and would like to pass along some of these lessons.
This blog will hopefully save me time in answering the dozens of questions I get each week through Facebook and Twitter. If not, I guess I just created more work. Question: “How Should Small Accounts Avoid the PDT Rule? There’s no denying that the pattern daytrader rule causes huge frustration for many new traders. I often get questions about how to best deal with this rule. In the US, you are limited to three daytrades every five business days.
If there are certain US brokers that you have your heart set on, one option is to open multiple accounts. That way, you get three daytrades at each broker. This is the strategy I used when I first started. I will not tell you which option is best for you. This is an example of something that is best to learn for yourself. I believe both can be good options, though, so take a shot with one of them – and if it’s not working, don’t be afraid to change it up!
Does the PDT rule apply to cash accounts also? I was under the assumption that this is a margin account rule but not sure. Good question, I’m actually not sure. This comment has been removed by the author. I have a cash account at TDA. It is not under the PDT rule, but it takes 3 days for funds to settle after you closed the trade. 3333 every day, making as many trades as u like.