What is the Pattern Day Trade Rule? (PDT) for Stock Traders

Exellent video, clear and to the point. Thanks!

Well made 10 trades in like 30 minutes so guess I’m fucked cya guys in the minimum wage life

Does this rule apply to options?

Thank you Sasha! Please Keep making great videos

To be clear, this doesn't apply to cash accounts, correct? Only margin accounts?

It's per 5 market days or per week? Let's be clear on that.

I tought your bound by social security. Some one told me you can have many broker as you want but they still gonna see you pattern day trade.

PDT rule is only applied to traders who use Margin ( Leverage) to trade more than 4 round-trip in the same security on the same week of trading ( 5 days, from Monday to Friday ).

With ( Cash -Account -Only ) trader could trade as many as s/he wish provided that s/he must wait for settlement to occur from the proceeded sale of their securities, which usually takes 1-3 working day. This why you need Margin Account to overcome the settlement period.

I have a question, if I'm labeled a pdt and I have well over $25,000 in equity. If I use my full buying power 4:1, can I hold position until the next day? Thank you

Is buying & selling considered 2 trades OR 1?

just wrong. day trades are when you buy and then sell the shares of the same stock in the same day. you can only do this three times in a five day period. the fourth time, you can't do any more day trades for 90 days but you can still swing trade.

keep the poor man down from joining the "Good Old Boys" club…

Your confusing ppl

Your awesome thank you for all the videos

It’s a way to the little guys down and the big guys up…

Untrue, if you make your 4th sell and you’re under 25k, you’ll be marked as a pattered day trader. This restricts you for 90 days from day trading.

Good stuff but man you look and sound like a creep lol

So the Pattern Day Trade rule is set up to protect the market from us poor folks who are trying to better our lot in life. It’s not set up to protect beginners, it’s set up to hurt beginners.

I don't think this is accurate

This video Contains incorrect information. If you buy a stock premarket, during market hours or After hours trading and SELL THE NEXT BUSINESS DAY it is NOT A day trade because you held that position overnight. But if you bought Premarket on a monday and sold afterhours that monday that IS a DAY TRADE .

Does this apply on every country?

If you have multiple accounts for one broker do you get 3 for every account? I have 2 for E*TRADE.

Oh yeah the Gov't always protecting the "little guy" , basically this rule is to keep the "little guy" out of the game. BS

This is exactly why EVERYBODY should check multiple sources. I started trading recently and was Under the impression I needed a margin account to short sell stocks. I did not know that would put me under the PDT rule. I did some quick buy and sells which actually worked out in my favor and then the next day received an email from my account saying it was frozen and how I could alleviat it by either having $25000 in my account or some other jibberish that I could not understand. I could tell my broker did not want me to go back to a cash account, they must profit more when you have a margin, but I demanded that they put me back to it so I could continue day trading without restriction from the PDT rule. It is confirmed that it is a 3 day wait for funds to settle on a cash account. Pretty sad this video did not clarify that as at the beginning he sounded like he wanted clarify but only made it more confusing.

Every trade you make either partially or wholly beyond your cash account, applies as a trade in the PDT rule? In other words, you can buy and sell all day long as long as you use your own cash.