The PDT rule explained. The pattern day trade rule is something that you should be aware of if you are a new stock market trader with a smaller account. You get 3 day trades before you break the PDT rule. After the 4th trade your account will be locked for 90 days for the violation. You can ignore the PDT rule if you are trading with a cash account, but you also lose access to leverage and need to wait for your cash to settle.

Remember, I am not a financial advisor, any information included in this video is for informational and entertainment purposes only. It is not intended to be investment advise. Any trades you put on, you are the one that has to deal with the consequences, so be sure you know how to manage the positions before following any trade advise. Please seek a licensed professional for investment, tax, or legal advise.

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