Avoiding the PDT

Discussion in 'Trading' started by stockmarketfan, Jun 5, 2012.

  1. If I want to avoid the rules of PDT and still be able to day-trade, is it legal to open a trading account w an overseas brokerage firm?
  2. I should save $30,000 dollars allowing for a $5,000 cushion in case I experience a drawdown.

    Don't try to take shortcuts; either go prop or just save up. If you can't get this amount together, work on the strategy and keep saving.

  3. that's excellent advice, you should work on a strategy by doing some paper trading. if you're too impatient or need to trade to get that amount of money, i'm not sure how legal it is to open an account offshores, but a lot of people do it.
  4. You can day trade futures without any PDT rule, but futures force you into using more leverage than you may be comfortable with.
  5. Dura


    You can do a combination of overnight trades and day trades. As long as you stay within the 4 DT's per 5 days. For instance on Monday, make a DT. On Tuesday, hold overnight. On Wed, make another DT. On Thursday, hold overnight. On Friday Make a DT. That's only 3 DT's, so you won't get hit with PDT. Just be careful with the overnight trades, try not to trade something you're likely to close that day. That's just a simple example. I'm doing something similar to this being that I haven't saved up the minimum to day trade yet. Hope that helped.
  6. Assuming that you do not have the $25,000 you can also open up multiple margin accounts at different brokerage firms. This will allow you to do more day trades in a 5 business day period than having just one account at one firm.
  7. Futures - Forex