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The Pattern Day Trading Rule Is Dangerous

Yes, the rule is very stupid and as I will show… extremely dangerous in regards to what it can cause to happen. With that being said however, the rule “is what it is”, so you need to be very aware of how you should and should not be allowing this rule to influence and form your trade plans.

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Transcript:

The pattern day trading rule strikes again.Terrible rule, but it's a rule nonetheless.So yeah, let's make sure you're not an idiot about it.I do not mean to insult your intelligencebut I kinda gotta go through thisto just set up the backbone and premiseof how this real life situationthat I'm about to share actually fits in.So, there's a trade.And anybody can make a trade.And the first part of a trade is what?Well you have to enter.Right?And after you enter there is a possibility that,let me change up the.That bad can happen, right?I mean stuff just goes wrong, you can just flat out be wrongbut then just weird stuff happens and,by no means I'm not saying this is like,and there's a high likelihood that this will happen.But point being, if you are wrongthings can spin out of control quickly,things can just get nasty, and that's bad, right?So that's very, very bad.So because things can go bad,well, like I said,I'm not trying to insult your intelligence,it'd be nice to exit a trade.Because when you exit.The bad stuff starts happening,you keep the bad stuff under control hence risk management,hence all that good stuffwhich I preach on the channel all the time,but that's kinda the just general sequence of a trade.Bad things can happen in the market and because that existsthen yeah you probably would wantthe ability to exit the trade.So now let's get to this comment.So this person says on YouTube,huge gap bro, bought at 2.33, currently up.Had to hold otherwise gonna get hit with pdt rule.I will be the first to admit that this right hereis very, very stupid.The pattern day trading rule.Where you get five day trades,a day trade being you buy and sell in the same day,but you get three of those within a five day rolling period,I have other videos on it.But it's a stupid, stupid ruleand I have a protest video on it, so I don't agree with it.But like I said at the beginning,it's a rule so you have to deal with it.And the way you don't deal with itis by putting this into play.And what is this?The word have.Well let me throw in one more word, have to.If you have to do something, that's really bad.Especially when what, did you catch the key word?That comes along with this have to?If you have to holdwhat does that do to the basic premise?You can no longer exit.So if you can no longer exitand that happens,ah, uh oh.Again, that seems like it could hurt traders.I agree.This is why this is the dumbest thing everbut it is what it is.It does exist.So my point is and hopefully this is very basic to youbut it's not basic 'cause I've seen this time and time againover the several years I've been in the teaching, coaching,whatever business you want to call it.But helping other tradersI've seen this come again where peoplelock themselves into a very bad position in the sake of,well I don't want to burn a day tradeor I'm totally out of day tradesand then they find themselveswhere they introduce a have to hold.And think about it, remember,if you introduce this whole phraseover here into the equation,that is the same as eliminating your ability to exit.Now in many cases, will everything be okay?Yeah, like I said,I'm not gonna sit here and proclaim that you,the likelihood is you are gonna get roasted,no, but, all it takes is one of thatwhere you are stuck literally.You can't get out of a tradeand your account could get really, really nasty in a hurry.So just keep that in mindif you are falling under the pattern day trading rulealways make sure that a part of your planis not introducing you have to do something.Especially, I have to hold.Because that is setting yourself up for a high, high,there's a lot of risk that then enters into your trade plan.Sure maybe it's a low probability riskbut it's still a high risk nonethelessand you don't want to have your handcuffs like that,or hands cuffed like that.So be very aware of this and as annoying as it ishopefully this video becomes irrelevant at some pointbecause the government changes this whole nonsensebut as of today when I record this video,it's a very stupid but very real thing.And yeah, don't let stupid dribble downinto your own trade planwhere you're putting yourself in a very dangerous spot.If you are out there trading alone currentlyand maybe are in the market looking for a community to jointo assist you in your trading or to just help you,give you another set of eyeballs,then I do have a private trading communitywhere you can trade alongside meand other experienced traders.So what you see popping up on the screen right nowis both an information link,so if you click on the Inner Circle onethat is going to take you to the pagewhere I explain all the detailsof what exactly come with the community,both the chatroom and the newsletter,and then the other image that is popped upis a behind the scenes tourwhere you can see exactly whatis going to be contained within the community.I take you through like I said,a behind the scenes tour of everythingand that way you'll know preciselywhat you are getting when you join.So definitely check that stuff out if you are interestedand thinking about wanting to join a communityand let me know if you have any questions.

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