How to get around the PDT rule?

[jacknapier]

The only way I can figure is to do one trade per day. But, use two different accounts with two different brokers. The problem with this, is that one of the brokers denied me margin. Another problem is that it divides my trading funds in two.

Another way would be to pile my 'slow and steady' account into my day/swing trade account. This would give me plenty of room. However, it is said that you shouldn't mix and match accounts like that. And I don't know if I would be able to resist the temptation to day trade the entire account.

Anyone have any other ideas?

Thanks.

 

[timsk]

Anyone have any other ideas?

Hi Jack,
Have you considered CFDs instead?
Tim.

 

[jacknapier]

CFD's are allowed in the US now?

 

[cablemonster]

Join a prop firm. Firms like JC trading. Low minimums.

 

[wackypete2]

CFD's are allowed in the US now?

No.

 

[wackypete2]

Anyone have any other ideas?

Thanks.

Your best bet is a prop firm as cablemonster suggested.

Here's a workaround in case you get stuck and don't have another day trade to use before getting the PDT penalty. EMERGENCY USE ONLY:
- If you purchased a stock and need to exit, call your broker and tell them you want to "short against the box" the same stock. This will open a 2nd position for you as a short position but you will be net flat. The next day close both positions. Neither will be considered a day trade under the PDT rule.

Caution: You are evading the rules and your broker won't allow this too many times.

Peter

 

[timsk]

No.

Oh, really! Sorry Jack - didn't realise that. Traders stateside sure have it rough - I thought CFDs were tradable just about anywhere these days. My mistake - apologies!
Tim.

 

[wackypete2]

Oh, really! Sorry Jack - didn't realise that. Traders stateside sure have it rough - I thought CFDs were tradable just about anywhere these days. My mistake - apologies!
Tim.

Not only are we trading against the markets here, but also against the convoluted gov't regulations. SUCKS.

Peter

 

[D70]

Oh, really! Sorry Jack - didn't realise that. Traders stateside sure have it rough - I thought CFDs were tradable just about anywhere these days. My mistake - apologies!
Tim.

CFDs on US stocks? Sure there are.
Wacky. On what basis do you say no?

 

[wackypete2]

CFDs on US stocks? Sure there are.
Wacky. On what basis do you say no?

You misunderstood.
Yes, there are CFD' on US stocks, but they are illegal for trade here in the US if you are a resident.

Peter

 

[jacknapier]

Hmm... I've been told to stay away from prop trading firms. I don't know why? They sound interesting, but I'm not sure they are for me. I will read more about them though. Thanks.

 

[D70]

Hmm... I've been told to stay away from prop trading firms. I don't know why? They sound interesting, but I'm not sure they are for me. I will read more about them though. Thanks.

Just get the $25,000 dollars. Far easier and more appropriate solution.