Pattern Day Trading Loophole??

[Mr.Consistent]

Quote from learn&earn:

That way he can execute 3 "day trades" per account. I thought this was very clever but not sure if it's legal. any thoughts?

You can try broker outside USA, and negotiate lower commissions. Have a look at http://www.questrade.com/pricing/margin_stock.aspx I don’t know if this particular broker is any good, it is just a suggestion how to get around the PDT limitation.

Remember if you choose to go this route with a broker outside US that there could be some hidden risks involved .

 

[MohdSalleh]

if u do not even have 25k pls do not start any kind of trading

 

[TraderSU]

Quote from Surdo:
Trade futures you rocket scientist.

Future and Forex market is a true zero-sum game and most likely you will be fighting with very sophisticated algorithm trader (automated trading platforms). Please correct me if I'm wrong.

Also what are my chances of success if I'm using a web based platform for future trading?

Cheers,

 

[Surdo]

I have been earning a very healthy living trading futures, almost exclusively, for over 5 years. I guess I have been on the right side of the "Zero sum" more than 50% of the time.

Why do you need to use a "Web" based platform?

surdo

 

[TraderSU]

Quote from spindr0:

LOL. I like the word " SHOULD ". What happens if someone else hits one side of your two orders and the market moves against the other side? You'll be left there holding your joystick while the other side goes directional, possibly for or possibly against you but hardly the no risk thesis you offer.

I understand the complication - but may be we can use some automation to trigger both orders with millisecond precision. This should be pretty reliable in pre-hours trading.

 

[Mr.Consistent]

Quote from sudhaker:

Future and Forex market is a true zero-sum game and most likely you will be fighting with very sophisticated algorithm trader (automated trading platforms). Please correct me if I'm wrong.

Also what are my chances of success if I'm using a web based platform for future trading?

Cheers,

Neither in futures or forex you'll be fighting any automated systems, you'll be fighting only yourself. There are opportunities to make money in both markets.

Yourchances of success in trading will depend on "YOU" and not the market or the platform you trade from.

All the best

 

[TraderSU]

Quote from Surdo:

I have been earning a very healthy living trading futures, almost exclusively, for over 5 years. I guess I have been on the right side of the "Zero sum" more than 50% of the time.

Why do you need to use a "Web" based platform?

surdo

I'm not a full-time trader so I'm at work everyday 9-6. Not sure if any trading clients will connect through the company proxy (i tried openecry but no luck).

 

[TraderSU]

Quote from spindr0:

That's very clever double talk to avoid the truth. If you buy SRS in A1 and DXO in A2, you have two commissions. When you want to close the two positions, you have two more commissions. That's a total of four regardless of how low your commission rate is. 4 is twice as much as 2, capiche?

But if writing that 3 * 2 < 7 makes you happy, go for it. And if you think that buying SRS twice and selling it all at once reduces the number of commissions below 4, I have a bridge to sell. Interested?

If you had 2 lots of SRS in A1 then your commission overhead is 50% as you will settle everything in 1 lot.

Similarly if you had 3 lots of SRS in A1, your commission overhead is only 33%.

I'm also not happy about this double commission, but what are my options?

MohdSalleh has already made this cruel comment.

Quote from MohdSalleh:

if u do not even have 25k pls do not start any kind of trading

Anyway, here is my point.

Quote from NOPDT.COM:
If a beginner wants to learn to drive a car, he or she would buy a car for say $5,000 knowing that there is an 80% chance of a "major accident" in the first 3 years. Imagine the government (SEC) having a new law that says all new drivers should only purchase a brand new car for $40K and not any used car for 5K :-( We want to protect you. So for that reason we only want you to learn to drive in a Mercedes-Benz, Volvo or BMW with will cost a minimum of $40,000. We are doing this to protect you the driver since old cars may not have all the necessary safety feature.

And yes, he can only press the break three times every 5 miles because he didn't buy a brand new car (40K).

WHAT A CRAP, SAY NO TO PDT

Good trading means taking losses quickly and let profit run but this rule (PDT) completely prevents us from doing that :-(

PDT CAUSES MORE DAMAGE TO SMALL TRADERS

We know the risk of equity market and willing to take the challenge with our limited risk capital. Why can't SEC lift the restriction of three day-trade in 5 rolling business days possibly after signing a consent form with risk disclosure? People trading in options also sign similar disclosures - isn't it?

 

[Mr.Consistent]

Quote from sudhaker:

If you had 2 lots of SRS in A1 then your commission overhead is 50% as you will settle everything in 1 lot.

Similarly if you had 3 lots of SRS in A1, your commission overhead is only 33%.

I'm also not happy about this double commission, but what are my options?

MohdSalleh has already made this cruel comment.

Let me get it right; you are at work everyday 9-6, and you worry about pattern day trading??? I'm an optimist by nature, but I seriously doubt you will ever become successful daytrader under such circumstances.

Be honest with yourself. Your options are to either position trade, or leave your job and organize your life in such a way so you can focus on trading.

 

[TraderSU]

I'm sick of those highly paid IDIOTS who sit on the executive committee and make such rules/decisions that has no reality check.

This PDT rule was probably a valid protection for small accounts when the cheapest discount broker was offering $30 round-trip trasnaction.

It does not make any sense in current market where we can get an ultra-low transaction fee (0.004 per share) with many retail discount brokers.

My 0.2 cents