Sounds like you would benefit hugely from joining a professional frim. Your capitalization is preventing you from trading the way you want and sounds like it's exposing you to risks you don't want to take on. Some firms will take you with less than 25k and your leverage and commissions would be similar to what you have now, all you have to do is pass an exam. But you can trade as much as you want and implement your strategies without handcuffs.
Can someone please tell me the point of having the PDT (Pattern Day Trader) rule?!!! I can't figure out why the sec even cares how much money you have in your broker account. The only people who should be complaining are the brokers. I might be able to understand why they (the brokers) would like some kind of limit on the amount of capital needed to day trade on margin but why cant they set there own limits? Also who came up with the 3 trades per week?!! 3 TRADES PER WEEK!!! So if I make 4 trades per week I am day trader?!! Give me a BREAK!!! Someone making 3 trades per week should be called a pattern investor! If they feel they need to impose some stupid law like PTD can't they at least set the limit at 50 maybe 100 trades per week? This would still not really be all out day trading but at least it would be more reasonable for people with less than 25k. The way that the PDT rule is set up it's as if they don't want people with less than 25k investing in the stock market. That just doesn't make any sense. Is there someone here that could explain why the rule was ever made? What is the thinking behind the PDT rule? How is it suppose to benefit anyone? Who is it suppose to protect? I have two accounts that I trade. One of them is my sisters and she has less than 25k. Trading her account is so annoying that I don't think I can trade it anymore. Is that what the sec wants? People to just take there money else where? With rules like this they do not seem like they want people with less than 25k around. Is this the case?
My opinion is the PDT rule came about because the SEC belatedly thought they had better do something about all the amateur daytraders blowing out their accounts. They figured that if it ever went before a congressional hearing they could say "look we tried to limit the damage." We all know it's crap, but there you have it.
options you have left if you only have 24,999 dollars or less 1. fund accout be be above 25k 2. prop firm ( reg series 7) prop fimr recmedation echo bright and redwood 3. trade the minis good luck
Okay, this makes some sense but still, what's the deal with 3 trades per week? Why/how did they come up with such a low number? I think the brokers should have some say as well. Ther would be many better ways to keep something like day trading losses from comming before a congressional hearing then the rule that the sec has put in place. The sec rule just way over does it. I think that by imposing rules this harsh they have hurt the system, not helped it.