Pattern Day Traing with under 25k

Discussion in 'Retail Brokers' started by SurgicalScalper, Oct 22, 2005.

  1. Fwiw I have seen tons of post from traders having a problem with the brokerage firms now enforcing the PDT i.e. pattern day trader with accounts under 25k.

    What I havent seen and maybe this will be of help to some is that you can trade options and the settlement is T+1.

    So I switched over to trading options and can trade 3 times a week instead of once.
  2. Just remember that most people who buy options lose money. Not all, but most...

    Options can make you a lot but you have to remember not to overpay. I've learned the hard way you can be right about the underlying stock's directional move AND right that it will happen very soon and yet still lose money if you pay too much for the options.

  3. Very true SSB, not to mention that 75-80% forget the exact percentage of options that expire worthless. My intent was not to lead people astray into the volltile world of options but as possible alternative to those who have experience with trading them or to learn to learn more about them before doing so.

    Just a suggested alternative to using offshore trading accounts and other ways that some traders use to try to get around the PDT rule.

    I agree SSB as with any type of trading do your homework first , some nice DD and do not risk $$$$ that you cannot afford to lose.

    Happy Trading , SS
  4. SSF are not great but way better than options, the spreads on some are decent so for swing trading they are not bad.
  5. Fwiw according to Penson Financial Services or which is one of the biggest clearing firms that sometime in 2005 that the security industry is supposed to change to T+1 from the current T+3 settlement.

    I am not holding my breath waiting but thought that I would post what I had found on their website.
  6. Why bother trying to trade your own account with hassles when you can find a place to prop trade for 5k? Agreed, you cant trade options though.
  7. The SEC has killed Stock Trading for the little guy.

    If I were you I would look at Forex.

    200 times larger market.

    As much leverage as you want, 24 hour market, 6 days a week.

    If you get the proper training you can learn to make a nice living.

    But get a mentor that has traded FOREX, before you jump in and blow up your account with 400:1 Leverage.

    You can open an account for a little as 500 bucks.

    Nobody will be day trading stocks in 5 years it will be all FOREX.
  8. I dont blame anyone that one that wants to prop trade to start out with 5k and be heavily leveraged is great for alot of traders, but I personally didnt want to get into trading millions of shares .

    For health reasons and staying indepent I chose to trade my own account and have managed in a few trades to bring my account above 25k so the PDT rule doesnt effect me any longer.

    The reason for starting this thread was just to put out a alternative for those that are stuck with the T+3 settlement.

    So far this thread has already has some informative posts SSFs, Prop, and trading the Forex as well a options.

    I certainly agree with that the SEC has pushed out the little guy and that the Forex in the last few years has made major strides and has become a nice alternative for the smaller trader.

    Nice infromative post agin1415 I am not that knowlegeable about trading the Forex but you have did post some nice info for some others that may be interested in that type of trading.

    Thanks to everyone for the great posts and lets keep them coming, SS
  9. if you really consider yourself

    A: experienced
    B: have some edge or have backtested positively
    your system
    C: can handle leverage without blowing up

    then futures might be another way to go

  10. Hello,

    Would you Please be so kind as to share what the exact percentage of options you believe expire worthless? Would you be willing to provide the source for this belief?

    Thanks in Advance!

    #10     Oct 23, 2005