Most people would tend to agree that the PDT rule is ridiculous, but it is there and so you have to live with it. If you learn how to trade Forex, you can do all your technical analysis and preparation when you have time, and then use contingent orders for entries, targets, and contingent orders for trailing stops. Forex trends well, and you could trade 4 hour charts to catch nice trends that last for a few days. You'd spend only few hours per week trading and probably make more money than in stocks. Just a thought.
Yes, this rule affects my existing position trading strategy too. My biggest worry comes on days when my predictions are wrong and I hit 2-3 stop same day. I'm almost done for next 4 days as I get scared in taking any new position. Even if I take one, I hesitate in putting STOP. Isn't it a nice protection offered by PDT?
Exactly. It should be abolished. But this is the problem with our country today: TOO MANY LAWS, TOO MANY LAWYERS. AND NO DE-LEGISLATORS. It's killing us.
This rule was enacted in the midst of the Nasdaq debacle in early part of the decade. At the time there was some opposition to the average joe trading his own account from you know who. As it turns out these assholes have been virtually eliminated (Lehman,etc.). The rule is no longer necessary.
Hmm.. so this rule was never for the protection of average joe like me. I heard that bunch of knuckleheads blamed GOVT for losing their money during .COM crash and PDT was the response to those allegations. Whatever is the history - we need to find a decent solution? Props do not want my business; even if they agree, they demand for big monthly fee, high commission and volume guarantee. Even if I agree to it, their software won't not connect from behind the proxy. PDT restrictions are there in options world too. DAMN PDT. Cheers, Sudhaker (the rocket scientist) http://nopdt.com
From my vantage point the attack was two pronged: run the little guy out and steal all the Ira and 401k money that was not smart enough to get out of tech. These thieves deserve what they got.
Lets see what we small guys can do! Can a discount broker transfer assets from one margin account A1 to other margin account A2 without any transaction fee? Guess this workaround will provide a cheap and legal work-around for PDT. Can we request some comment from Just2Trade.com on this?
If so inclined, you can buy SRS 100 times during the same day in A1 and sell it all at once in A2. What does that have to do with the price of tea in China? Anyway you cut it, it's extra commissions and slippage because you're doing it in two accounts. And FWIW, if you did it all in one account intraday, it would be one PDT trade.
MAYBE and SHOULD? Toss in a little HOPE and you've got a chance. Pre and post market trading is the worst place to expect automation and precision. They're like the Pony Express - bids and asks can be miles apart