Pattern Day Trading Loophole??

Quote from sudhaker:

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 :D
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Most people would tend to agree that the PDT rule is ridiculous, but it is there and so you have to live with it.

If you learn how to trade Forex, you can do all your technical analysis and preparation when you have time, and then use contingent orders for entries, targets, and contingent orders for trailing stops. Forex trends well, and you could trade 4 hour charts to catch nice trends that last for a few days. You'd spend only few hours per week trading and probably make more money than in stocks. Just a thought.
 
Quote from Mr.Consistent:

:confused: 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. :)
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Yes, this rule affects my existing position trading strategy too.

My biggest worry comes on days when my predictions are wrong and I hit 2-3 stop same day. I'm almost done for next 4 days as I get scared in taking any new position. Even if I take one, I hesitate in putting STOP. Isn't it a nice protection offered by PDT? :confused:
 
Quote from sudhaker:

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 :D
More...
Exactly. It should be abolished. But this is the problem with our country today:
TOO MANY LAWS, TOO MANY LAWYERS. AND NO DE-LEGISLATORS.
It's killing us.
 
Quote from sudhaker:

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 :D
More...


This rule was enacted in the midst of the Nasdaq debacle in
early part of the decade. At the time there was some
opposition to the average joe trading his own account from you
know who. As it turns out these assholes have been virtually
eliminated (Lehman,etc.). The rule is no longer necessary.
 
Quote from gigsup:

This rule was enacted in the midst of the Nasdaq debacle in
early part of the decade. At the time there was some
opposition to the average joe trading his own account from you
know who. As it turns out these assholes have been virtually
eliminated (Lehman,etc.). The rule is no longer necessary.
More...

Hmm.. so this rule was never for the protection of average joe like me.

I heard that bunch of knuckleheads blamed GOVT for losing their money during .COM crash and PDT was the response to those allegations.

Whatever is the history - we need to find a decent solution?

Props do not want my business; even if they agree, they demand for big monthly fee, high commission and volume guarantee. Even if I agree to it, their software won't not connect from behind the proxy.

PDT restrictions are there in options world too. DAMN PDT.

Cheers,
Sudhaker (the rocket scientist)
http://nopdt.com
 
Quote from sudhaker:

Hmm.. so this rule was never for the protection of average joe like me.

I heard that bunch of knuckleheads blamed GOVT for losing their money during .COM crash and PDT was the response to those allegations.

Whatever is the history - we need to find a decent solution?

Props do not want my business; even if they agree, they demand for big monthly fee, high commission and volume guarantee. Even if I agree to it, their software won't not connect from behind the proxy.

PDT restrictions are there in options world too. DAMN PDT.

Cheers,
Sudhaker (the rocket scientist)
http://nopdt.com
More...



From my vantage point the attack was two pronged: run the little guy out and steal all the Ira and 401k money that was not smart enough to get out of tech. These thieves deserve what they got.
 
Quote from gigsup:

From my vantage point the attack was two pronged: run the little guy out and steal all the Ira and 401k money that was not smart enough to get out of tech. These thieves deserve what they got.
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Lets see what we small guys can do!

Can a discount broker transfer assets from one margin account A1 to other margin account A2 without any transaction fee?

Guess this workaround will provide a cheap and legal work-around for PDT.

Ref: http://just2trade.com/contact_us/faqs
Can I transfer funds/positions internally from one Just2Trade account to another?
You may transfer funds / positions from one Just2Trade account to another by completing and submitting a Letter of Authorization via mail to:
Success Trade Securities
c/o Just2Trade
1900 L Street, NW, Suite 525
Washington, DC 20036.
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Can we request some comment from Just2Trade.com on this?
 
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%.
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If so inclined, you can buy SRS 100 times during the same day in A1 and sell it all at once in A2. What does that have to do with the price of tea in China? Anyway you cut it, it's extra commissions and slippage because you're doing it in two accounts.

And FWIW, if you did it all in one account intraday, it would be one PDT trade.
 
Quote from sudhaker:

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.
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MAYBE and SHOULD? Toss in a little HOPE and you've got a chance.

Pre and post market trading is the worst place to expect automation and precision. They're like the Pony Express - bids and asks can be miles apart :)
 
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