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Author Topic: Helpful info re: PDT
HShankle
Moderator
Posts: 59
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Post Helpful info re: PDT
on: February 8, 2013, 11:09
Quote

Just a quick note to try and help some folks in chat regarding PDT rule...

2. Open up a cash acct at TD Ameritrade. I have a cash acct there w 10K and they allow you to trade options (Buy calls/puts) Options settle in 1 day instead of 3 and w a cash account PDT rules do not apply... ETrade will not allow you to trade options with a cash acct (Covered Calls Only) so they are not a good option with this. I started my TD cash acct to try to turn 10K into 50K in 2013 and so far I like having my side cash acct w them.

Note: Do not open a trade if you have maxed out trades for your 5 day rolling period. If you can't sell a position do not take one at all!

Hope this helps...

-HShankle

Follow me on Twitter @HShankle
Market Commentary & Trade Ideas (MarketShanks) http://stockhaven.com/author/hshankle
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Email me shankle.hunter@gmail.com to learn how to avoid PDT/10:1 Margin

Sara
Noob
Posts: 1
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Post Re: Helpful info re: PDT
on: February 8, 2013, 14:19
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Thanks for the tips HShankle! Being subject to PDT myself, some others in chat gave me a similar suggestion:

Open two accounts at TD Ameritrade, one cash, one margin. Helpful with my small acct: I have $500-$1,000 in my margin account and I'm opening a cash acct with another $1,000 soon (using mostly profits, thanks SH on providing the AMZN prep work this week and to AAPL for calls o/n). Seeing everyone bank while you're sitting on the sidelines pretty much sucks.

Hopefully the 1 day settled funds works with only $1,000 deposit, that would be excellent!

-- As a side note -- Having traded Options less than 2 months now, I will keep my accounts $500-1,000 until I learn consistency and trade without going bi-polar when volatility soars, hah! (Although my occasional happy dance now and again like this am on AAPL can't be so bad :) I withdraw funds once I get over $1,000. If my acct goes too low, I deposit funds, which gives me 3-5 days of papertrading to learn from my mistakes. It forces me to think twice before pressing enter, gives me a great reminder without breaking bank when I go all/mostly all-in and get owned on one bad trade - but most of all - it doesn't allow me to go outside my comfort zone with too many contracts, lottos, etc..

Thanks for everyone's help in chat!
Sara

HShankle
Moderator
Posts: 59
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Post Re: Helpful info re: PDT
on: February 8, 2013, 16:19
Quote

Glad you are doing well... I am not sure ab the acct minimums but call them up and get all the info you need. Have a good weekend.

-Hunter

Follow me on Twitter @HShankle
Market Commentary & Trade Ideas (MarketShanks) http://stockhaven.com/author/hshankle
Weekly & Nighly Watchlist (HShankle’s Watchlist) http://stockhaven.com/stock-forum
Subscribe to my youtube channel http://www.youtube.com/ShankleUp
Email me shankle.hunter@gmail.com to learn how to avoid PDT/10:1 Margin

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