The PDT rule is holding me back. And it makes no sense.

I don't understand how the PDT rule is helpful. Even for new traders.

Why is it helpful to force traders to start with such large amounts, before they have learned about risk management, fear, greed, etc.? New traders should be LIMITED to below $5k, not forced above 25k. Money doesn't equal experience.

And for people like me, who have experience, but not 25k, I can't access low commissions to make this a worthwhile venture. I'm stuck paying .012 instead of .0035. (I do scale outs with a $5k account, so I'm losing some cost efficiency.)

How is it helpful to force newbies offshore, where they get eaten alive by overpriced commissions. Sure it's not legal, but they know everyone does it.

This is the rant of a person who is being severely impeded, not helped, by the PDT rule.

 

I dont know what that one is about.
You do not trade with a large amount of money. I will gurantee you that you will lose them all eventually.
I dont know how to summarize how you should trade cos small retail traders stand no chance, I am afraid...

 

You can always swing trade (?)

Just a guess, under 25 000 - 3 trades per week ?

So at Friday, you could enter 3 positions & on monday, eliminate those that didn't work out.

Im on the side of PDT , noobs dreams get buried before they even start & that's how it should be for their own good.

P.S

Peter Diamandis, spoke about company that gets paid, only if they ,,ruin" your plan for a ,,great" project, they have to prove, that it isn't going to work out and it isn't a ,,great" plan, to get paid, so eventualy - you win by saving time and capital.

 

Regrettably it sounds like it's doing exactly what it was intended to do.

 

IMO the PDT rule does not protect anyone in the way the SEC intended. I think as your assets drop, you should still have the opportunity to trade and recycle buying power but at lower leverage. I would suggest to the SEC that all margin account get to trade but:

>$25,000 up to 4X
$10,000 - $25,000 up to 2X
<$10,000 1X

On a side note, futures have no PDT rule. I would consider learning futures which also have no wash sales and better tax treatment.

 

It does not seem like you understand whom the PDT rules are trying to protect and it doesn't seem like you did your research about such a key variable to small retail traders prior to getting involved in trading.

Also, everyone (as you implied) with a small trading account are not going offshore nor being forced to go offshore.

Further, if you have so much experience as you stated, you would have fully understood the limitations of the PDT rule early in your career and by now you would have been accumulating your profits so that you would have grown your account to > 25k

Last of all, the only way a small retrail trader can not grow their account (if its profitable) is if they've been using their profits to pay for living expenses...that would imply they are trading with money they can not afford to lose.

wrbtrader

 

Trade futures or options on futures. No PDT rule..

 

I am referring to day trading, where it is neccesary to go offshore. All of my experience is with day trading.

And my whole complaint is that offshore commissions are negating my profitability, so that I cannot build up money to get over 25k.

I calculated my commissions with my broker, and I would have to make more than 40% per month just to beat commissions. On a 5k account, my commissions were $1600 in one month.

 

You are either over trading or your profit targets are too low.

 

I do 15 minute trades. Sure I could change my approach to do 1 or 2 hour larger trades, but if I'd rather make it to Interactive Brokers, and keep my style.

If I end up stuck offshore, that will be a solution.