161. The Pattern DayTrader Rule

http://www.informedtrades.com/

The next lesson in my free video stock trading course which covers the implications of the pattern day trader rule and why you need $25,000 to daytrade stocks.

Category:

Howto & Style

Tags:

• patterndaytrader
• daytrader
• stocktrading
• stockmarket
• finance
• investing
• margin

[birchmanllc]

Thanks for the explanation still doesn't make sense about pattern day trading. Futures and forex carry more risk without restrictions. I never knew the Nasdaq bubble is why they went to pattern day trading rules.

[InformedTrades]

yes I see where you are coming from as well. I think the reason that would probably be given is that stock trading is much more mainstream than futures or forex trading so they felt there was a greater need for protections there. Best Regards, Dave

[santiagoJjavier]

Hi David,

If your Account was temporarily Restricted that means that the account was restricted to cash only transactions?

Example: Total market value of securities= 9000 Net cash/margin balance= 13000

Are you allowed to use 13000 in cash to buy and sell a stock?

[InformedTrades]

Hi, I am not sure I understand the question here but if you mean violating the pattern day trader rule so that your account is restricted to cash only then you would only be able to use the free cash in your account to purchase additional securities. So for example if you had 10K in the account and had 5k in one stock position then you could only purchase 5k more of stock. Best Regards, Dave

[laburnum12]

DAVE. I heard last week on FAST MONEY. That the rules has changed is that true. Or am I watching the wrong TV shows. Whats your favorite one

[InformedTrades]

Hi laburnum12, I have not heard anything about a change in the pattern daytrader rule. I don't watch TV much I prefer internet videos as they are more concise and from real traders. Check out the stock trading videos section over at InformedTrades for some good ones. Best Regards, Dave

[DayTradersWin]

I like your video - subscribe to my channel and friend to have day trade videos

[gsus7125]

The truth is that the SEC and the people behind it were looking for any excuse to keep us "normies" from breaking out of our cage, thus, the PDT rule.

[thebirthofsecondjuly]

great ....and the best lessons i ever seen and had, ...if you do not mind can you help us on Equity research methods and use in real world , like Equity research analysts do to make portfolios,etc. thank you very much Dave

[DannyShreds87]

Would love to see a video or post on what Indicators you use for trading successfully :)

[paul1188100]

Great Videos mate. Thanks! : )

How is the 6% calculated Dave?

[gunzkillu]

i wanna trade but where do i get the money from??

[rofsjan]

Hello Dave. Thank you very much for the great videos about daytrading! I'm going to view your Forex Trading videos.