Hey guys, in this video, I want to go over the one of the major nuances for all beginner penny stock traders. And that is the pattern day trader rule or the PDT rule. You probably have heard of this a lot, but don't know exactly what it means. But if you've done any sort of trading, you know, real trading with a real account, you might have actually hit this rule. And basically what it is, is it's a rule that kicks in when you execute four or more day trades within a five business day period. So a day trade by definition is when you buy and sell a stock in the same day.

So that's considered one day trade. So pretty much what this means is that you're only allowed as a day trader, you're only allowed to do a total of four day trades every five days. So pretty much you know, five business days meaning one week so that is a very literal factor for you to be able to be an effective trader. So the PDT rule only applies to anyone who has an account under $25,000. So, you know, if you're a beginner trader or even intermediate traders, you know, $25,000 that's a decent amount of money to be able to then be free of this rule and it was it was created by the SEC to kind of protect beginner day traders and everything and people in general so that they don't lose all their money. But this, you know, it's a huge hassle for anyone who actually wants to get into serious trading.

And you know, you can't just you know, you can do proper trading when you're limited to such an extent. Because then you're, you know, there's already so many factors involved when you're trading. You don't want to have another headache that, Oh, I'm only limited to this amount of trades. So you know you never want to develop a mentality that you don't exit a trade that you should just because you know that you're going to use up a day trade so you know the PDT rule if you're under if you have less than $25,000 then you are required to unlimited to only four day trades every five business days so a lot of people then turn to sure trader This is sure trader and you know I know Timothy Sykes and a lot of people say to us shirt trader I'm not sure how this has never been brought to light before.

I'm guessing he has some sort of deal with them I guess. Or maybe he's even affiliated with them in some ways and you know I I'm a huge fan of Timothy Sykes, but the problem with sure trader is first of all their customer service is awful and their platform unless you get the pro version is is variable buggin down many of the times and they always blame it on das trader for some reason which is I think one of their affiliate for their virtual accounts. But um you know, I was actually thinking about making a sure trader account but it's very important to realize that well first let me explain shirt people use your trader because they're an offshore offshore brokerage so that allows you to get around the PDT rule because you're not exposed to it you know you don't have you're not limited by it anymore.

So you can do as many trades as you want, no matter how big your account is, whether it's $5,000 $500. So, the problem though, is that the way they are able to get around the rule is because they're located in the Bahamas, and so they are not required to follow the the PDT rule and they're not required to enforce it. But you know, this is first of all, just in general. When you First hear that we already dealing in a very you know manipulated and very that kind of you know pay socks is a shady shady industry shady yeah shady industry so when when you hear about trying to get around the law you know there's always something off about it and here Here it is you know share trader does not serve as accounts for us citizens us residents or US corporations does now so they say us resident clients and and you'll notice that when you try to make an account they'll automatically try and adjust your settings so that you're they'll put your country has the Bahamas automatically and you have to like manually try to mess around and adjust it so if you're outside of the US and you know you're watching this and you're outside the US then go ahead you know use your trader though I doubt your country in general has the PDT rule.

So you'll but I guess you would just even if you're from a different country, you'd probably use brokers in the US. But yeah, so a lot of people say sure, traders a way to go. But really, first of all, they specifically say they don't service accounts. They're an offshore company, you're putting thousands and 10s of thousands, even hundreds of thousand some people have millions of dollars in their brokerage accounts. I would want mine to be insured with us laws, you know, I would want my money to be insured by us laws. And this company clearly, you know, clearly is not bothered with trying to follow us laws.

So, I would very much advise against using show trader, I have no problem with them. It's just if if you're, if you're outside of the US, then go ahead, use it, you know, I would use it definitely. But if you're inside of the US, you know, they're not gonna they're not gonna, if if, you know, if any problem occurs, they're not going to To support you, because, you know, the rule is that they don't serve as accounts for us citizens residents or corporations. But okay, so now I also said that I was going to talk about how to get around this rule. And the way to do that the way to get around the pattern day trader rule is to set up multiple accounts, multiple brokerage accounts. So you should have an account with you know, TD Ameritrade and, and you trade and I don't know, what's another one, you know, you can just what you should do is you should have several brokerage accounts so that you can then you have more trades, you know, every account that you have, you have for extra day trades, you know, it's not per person, it's per broker account, per account.

So that is technically the way to get around it. You know, you need to have at least 25,000. So, when you start off, that's it. Very annoying thing about trying to make money because you're limited in the amount of trades that you can do. But I believe that the, you know, I'd recommend not using shadow trader and opening up several brokerage accounts so that you can still get around the rule you can still trade a lot. You don't have to worry too much about the trading rules.

And you know, you'll still be able to get into a lot of the action still trade pretty often to make good gains.