Upcoming Free Training Event: One of the most annoying things in all the stock market, not being able to trade as much as you want because you have a small account. In this video, I'm gonna give you the solution to this very common problem. So in this video I'm gonna talk about how to get around what is known as the pattern day trading rule.
Pretty much this is what holds people back from being able to trade as much as they want. But there are some ways around it, and I gotta give credit where credit's due, I was actually unaware of a couple of these things, but then through the chatroom and talking with a couple members they brought 'em out and I thought, "Wow, this is truly game changing for the people with smaller accounts.
So first thing that you need to do in this process. So let's talk about the process here. Is you need a cash account. Cash account, not margin. Now what I was unaware of is that the pattern day trading rule, that applies to margin accounts, but not cash accounts.
So that step is crucial. Cash account is what you either need to open up a new account as or change your current account to. But it's all about the cash account. Second thing you need to do Now you may be thinking, "Oh great, I gotta learn something new. Sure I'd love for you to buy my course, but even if you don't, point being for this all to work, gotta learn options but options are very very similar to stocks. Sure they're a little bit different. Now there are very complex strategies out there, things can get pretty intricate in detail, but there are other very simple ways to approach options and like I said that's what I teach in the course, the very very simple approach.
But regardless, options need to be learned, but don't be intimidated by that, they're truly not as bad as what a lot of people, kinda the stigma that surrounds them, they're not nearly as bad as what for me for a long time I thought they were super complex, and while you can make them super complex, they don't need to be that way.
But second thing is, gotta learn options. And the key thing here, you don't need to do anything, but it's what options allows you to do. Now the thing you may be thinking is, "Wait, why do I have to learn options? If I can just change it to a cash account for my stocks, then I'm fine. In other words, you make a trade, you have to wait three days before you can use that money again. That's the easiest way to look at it. So you make a trade, now you gotta wait three days before you can access that money again.
So in other words, you only have to wait one day, or in other words, you make the trade on Monday, Tuesday you're gonna have access to that money again. You have to wait three days in order to get access to the money. But with options, only have to wait one day. So again on Monday you can make a trade in an option, and then Tuesday your money is available to you once again. So let's look at it like this. So that is just kind of one of the hidden things about options is you don't need a lot of money to make money.
So right here, let's just say that this is all on Monday. You have three trades here, right? And they can all be day trades, so you buy and sell an option with , you buy and sell an option with , you buy and sell an option with Right there is three days. So you would be done at this point. So Monday you're all done. But then when Tuesday rolls around, because of this beautiful thing over here, you only have to wait one day. Tuesday comes around, you can do that same thing.
Again, there, there, there. If you made money on Monday then you could maybe even do more trades. So on Tuesday you could technically do four trades. It's all going to vary, obviously, but the point being is as soon as Tuesday comes around you have access to everything that you had on Monday, where as with stocks, you'd have to wait three days for things to settle.
So let's just say you did three trades a day. There's five days in a week, so you could have 15 trades per week if you wanted to. Obviously if you had more money in your account you could do even more trades. If you've been around you already understand that. Maybe you're thinking, "Well that seems a little too many. So if you haven't really looked into options, or just think, "Ah, they're just too complicated.
If you wanna kinda invite the IRS to come audit you, I guess that's your prerogative, but when there's ways like this that are out there that are completely legit, don't require offshore brokerage accounts or anything like that, I think this is a much easier and efficient path to being able to trade more often.
So like I said, I do offer a course on options, you can click the link down in the description box if you're interested in learning about that course. And like I said, don't equate options with complicated.
That's what I did for the longest time and it's just not the case. They can be very straightforward and simple, and that's what I strive to do in the course, so check that out if it sounds like something that you want to pursue. But bottom line, whether or not you want to learn from me in my course, I'd get out there and consider giving options a try, 'cause you're gonna have a lot of flexibility, and it is truly a solution to the very annoying, very just, very talked about pattern day trading rule.
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