So anyone who doesn't know I officially became a PDT on August the 3rd... I feel like an Alcoholic. For those who don't know if you are in the US and Enter and Exit a position on the Same Day that is considered 1 day trade. You are allowed 3 for 5 days. After that you are done. If you open a fourth position be ready to get pegged as a day trader if you are listening and watching Tim's strategies. But its not the end of the world if you made that 4th day trade. No one of course wants to put in the 25k here I assume so let me explain what a "cash account" is.
So basically I kinda knew this but allow me to explain if you just want to be a "cash" trader. Depending on your broker you can enter in with whatever cash you want into that position. You can exit that position whenever you want to, however, It usually takes 3 business trading days to close that position to make your cash available. So lets just say you have $10,000. Simply don't play with all of it lol! Enter into a position for lets say $1000 and sell when you need. That leaves you with $9,000 to play with at least for 3 days.
I'm not that guy with 10k unfortunately I'm trying to grow an account from $2500 that I am currently down on. So what does that mean... $500 a position still leaves you room for a 10 to 30% gain after fees. Just cut your loses (or even break even if its looking to dip) quicker and be more accurate on your buys, don't take those gambles or chases.
Good luck all.
PS
There is the option to always switch brokers...
You can have a cash account (no PDT to deal with) and open a seperate Margin account (subject to PDT) for 3 shorts in 5 business days...I like cash account for small $2000 account b/c U can have 6 or 7 trades per week taking smaller positions while U learn how to trade and get used to the emotions of trading with real money and not just paper trading...2 completely different experiences.
I like PDT , It teaches you how to trade not to gamble because you have to be picky and think about it . You can do the cash but even if you enter a trade with $500 you have to make at least 2% to 5% gain depend on your broker to just cover the commissions ! If I were you I would stick to my margin account and try to grow it .
Cash account is not for learning if you dont know how to trade open a paper trade account . Over trading and FOMO are the worst things can happen to new traders and they can kill your account very very soon . However , If you think you know what you are doing but you are not successful because of PDT you can start USTOCKTRADE .They have low commissions and no pdt
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