I found a profitable trading system for US stocks. This is an intraday system that produces ~5 signals per day, and makes on average 0.8% per trade in simulations (I set aside 0.5% for slippage/commissions). Variants of that system can be made that trade more frequently, with larger overall income but smaller per/trade income. However I can't put it to trade because of the stupid pattern day trader (PDT) rule - I have to invest $25k to be able to trade intraday. In fact, $30k is needed, because if the account touches under $25k even once, it must be closed. I dont earn much (I dont live in "developed" country) and it would take me many years to save $30k. I am willing to invest $2k. If the system works (and I believe it does), my capital will quickly grow up to scalbility limit, which is about $150k, see estimation below. If it doesn't, nice try. Any advice - how to circumvent that PDT rule without paying too much in commissions. For example in the US I found firsttrade.com, $7 commission for up to 5000 shares - that is acceptable for me. But I can't use that broker because of the PDT. I don't have money to invest in "education", "licence", "trading platform" etc, so please don't bother ------------------------------------------------------------ Some evaluations for scalability and income potential: On each signal I estimate 1000 shares can be traded without moving the market by more than 0.5%, so given average share price $30 we arrive at 30*1000*5=$150k/day scalability limit for this system. Which gives us 150k * 0.008 * 21 = $25k/month income potential.
1- PDT doesn't mean your account have to be closed. If you do 3 round trip day trades per week, then you accout will be restricted for few days, and then you can do it again... 2- Use Interactive brokers instead. They charge $0.005 per share with a $1 minimum. Much better than $7 per trade for small accounts. 3- It think it is a little *hard* to try start trading with $2000. It is probably possible but I think it is hardd, especially if it is a LOT of money for you and you are worried/scared that you might loose it If your system is very robust and you were able to develop it, then you probably should be able to develop a "swing trading" system. Just do that and won't have to worryy about PDT rules Good luck...
??............!!....Adopt your "method" to foreign exchange trading. Your $2,000 leveraged at 100-to-1 will grow to $150K in no time at all!
It DOES have to be closed - I know it fist hand because I already "blew" one account this way .. after first PDT violation they sent me notice requesting to invest $25k, then converted my account from margin to cash, then restricted me to trading once in 3 days, and then forbid me trading at all. Unfortunately I don't have any working swing, futures or forex trading system at hand now. In fact I tried, but found no loopholes yet ) I came across this: www.alldaytraders.com, they charge like $8-14 per trade and don't enforce PDT. Looks like the only solution available, albeit little pricey and !! $100 !! for wire out is outrageous. They posted some financial statements on their site and the most recent one is dated 2003, which looks a bit suspicious. Anyone has recent experience with them? Any alternative?
Hi, I'm new to stocks and looking for profitable signals for day trading stocks. Can you tell me which company is that giving signals? what is their website? Thanks
The PDT rule was imposed by the SEC, so no U.S. broker can ignore it. Alldaytraders.com is located outside the U.S. Find a better non-U.S. broker, and you should be in business.