How To Avoid The PDT Rule On Robinhood | Robinhood Cash Account Tutorial

In this video we are covering how to avoid the PDT rule on the Robinhood platform. We cover what you need to know, how it works and more!
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[@TCTrading]

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[@jeftru1]

Extremely helpful video. I've been dreaming of somehow bypassing the PDT rule in order to make consistent passive income, so that I ensure that I never die a slave for some corporate guinea pig wheel. After watching this video I definitely see myself switching to a cash account in a few days since I did a DT earlier in the week. Can't remember the last time I was excited for the future! Stay up brother!

[@yaminatoday1151]

Great video. I have been trading options for two years, and I am JUST learning about cash accounts. The three trades a week is too limitng for me, and THIS method is perfect, because I can ride a trade up and down in a single day. Amen! And thank you for sharing this.

[@sunsty1e]

you're the only person to explain this so it makes sense..thanks

[@arthur-qm8qs]

Just started cash account on Robinhood and got a pdt notification so I was confused. You answered my question. I was using unsettled funds of a cash transfer from my bank account. Liked and subbed 👍

[@MakeupShawty]

PDT keeps you poor.

[@materiialart8226]

I'm going to try it, I'm opening a cash account

[@aaronz0rs]

PDT protects retails what are you talking about 😂

[@jamesfranqui2660]

The blessings of Being a US citizen. The US government has made us so toxic, no one wants to even open accounts for us.

[@DigitalDezinesCEO]

@@aaronz0rs Yea right

[@jeovanylopez9260]

@@aaronz0rs bout the dumbest thing I’ve read all day boy ptd isn’t nothing useful I need to trade buy and sell all day 💯

[@salvadorgonzalez6331]

Amazing video, man. Was so confused about the 1-2 days for settled funds. Thanks for all the info!

[@TCTrading]

Glad it helped!

[@SilentNine]

Thannnnk you!!! I was so annoyed about the restrictions!!!

[@futuresdojo]

Phenomenal tutorial. This was exactly what I needed! Thank you so very much! Subbed your channel!

[@TCTrading]

Glad it helped!

[@javidzahedi4757]

Thank you . Great information

[@marks.2814]

Thanks for the video!😊

[@davidotero1543]

You explained it very clearly, thank you bro!!! 👊🏽

[@TCTrading]

No problem 👍

[@mohamedcalooley4175]

Appreciate the help fam you rock 🔥

[@mohamedcalooley4175]

Tc trading wondering what you prefer cash or margin? I think now with a cash account your funds are available the next day

[@PapiPedro]

Great explanation

[@trev777]

Great video. Thx

[@yohaneswouldtsadik6218]

Great video thank you

[@garrettreid760]

Thanks for the help man

[@TCTrading]

No problem 👍

[@EverisAwesome]

great explanation

[@jackhartmann1084]

Thanks!

[@MACCSWAY]

Thanks

[@Iphone-yw4sd]

great vid j subbed

[@TCTrading]

Appreciate it!

[@pierinaquiroz7428]

Good video!

[@TCTrading]

Thanks!

[@BIMoji1]

Ty appreciate it

[@ggwithbusygg7083]

Thank you man

[@TCTrading]

No problem

[@morongosteve]

salute young soldier

[@adrhdz93]

Thank you

[@TCTrading]

Welcome!

[@jimbob7582]

Someone please help me out! I got the warning on Robinhood. So does this mean I can still make one day trade a day after the warning? Or I can’t trade at all for 5 days straight

[@shaoli6477]

Thank you for the video, it is helpful, For the cash account, can I buy and sell options at the same day ? How many times ?

[@TCTrading]

As many times as you have settled cash available to do so

[@karunakarreddy3675]

Thank you for the kind information!!! But how many days will it take to switch it to cash account if I have a margin account

[@TCTrading]

About a week from my experience a while back. May be +/- a few more days

[@daviddaking3546]

Just switched to cash account what does level 3 option info have? I have level 2

[@wbrown94]

By far one of the best explanations on the matter. My only question is this: if I make a trade say near market close, are the funds settled the next day at open? Or at the same time the trade was made. So 24hrs? Thanks

[@TCTrading]

If you buy and sell before the end of day your funds will be good to go at open the next day

[@wbrown94]

@@TCTrading Super. Thanks bro

[@rafakaczor2742]

Ok here is what I get and please answer to me did I good understand that. I playing 2500$ right now at Robinhood and I always playing with Tesla. If I good understand, when I will buy stocks for 2500$, and sell it like 30 minutes later for 2550$ (so profit is 50$), I can’t buy Tesla again with that same money, because they will come to me after 2 business days right ? So technically I still can’t do every day minimum 1 trade like that because after 1 trade I won’t have money on my account ? By the way sorry for my English but I still learning it 😅

[@BenjiBucketz]

Thanks, they got me today🤣🤣first day on my cash account sold my put and I was like damn were money at I wanna ride it up..womp womp womp 🤣

[@ColtonHaller]

same, this morning😭

[@mohamedcalooley4175]

😂

[@shonshishka877]

What’s pros and cons of a cash account?

[@user-yb3zr8pr6e]

What happen if I only sell the 75% of what i have and buy again and sell only 75% again it’s still counts PDT?

[@Drew_Cast]

I forgot about this thank you I switched my account definitely don’t need 25k to make money

[@TCTrading]

100%

[@la_uruguacha]

What platform you use for crypto? 🤔

[@tahakosker6603]

I have 50k on account can I close pdt to off and continue like that ?

[@michaelharris8613]

Do i have too have 25k in the account too be a cash account ?

[@nowaykicks7495]

So if I have buying power currently on my margin account. And say I want to switch over to cash account will I be able to trade options that day or no?

[@TCTrading]

No you will have to wait for the account to settle as a cash account

[@nowaykicks7495]

Also if I have 3 trade limits on a margin account If I do a swing trade does it count as one of my buy/sells of for them?

[@wagdi15]

You wouldn't be able to sell it on that day you bought. If it carries over into the next day then it doesn't count

[@peyans]

So if i buy any stock today and sell it today i wont able to use that money until the next day? or i can use it on the same day buy different stock? tnx

[@TCTrading]

The cash from the buy and sell today wont be available to use until it settles the next day or 2 (Depending on what you trade and the specific settlement time)

[@israelprieto3166]

Hi I bought a Call Option with my margin account but; if I change my Margin account to Cash account; Can I sell that option there?

[@TCTrading]

Yes, but you may need to exit all positions before the switch.

[@georgetaylor2819]

Please - so what happens when I DO have over 25K in my "margin" Robinhood account?? Am I STILL subjected to the PDT rule? Do I automatically get to ignore that PDT rule? Thank you

[@TCTrading]

If you take more than 3 day trades in the 5 day span, you will be marked as a pattern day trader by definition, but you will not be restricted to 3 day trades. You can take as many as you want.

[@romeorain]

Once you get a warning, does that mean you can’t or shouldn’t do any trade within the 5days?

[@TCTrading]

Technically you can appeal it. IF they warn you are close to the limit you can still day trade as long as you don't go over the limit. Going over the limit if how they will limit your day trading unless appealed.

[@Beyaself03]

@TCTrading how i appeal mines i got flagged n wanna make a play for tmr

[@Plumbing.repairs]

Ok I've been looking into this, I have a question you may be able to help with. Say i have $6,000 in the cash account. I decide to day trade and i go all in 6,000 dollars on one trade, I make $100, sell the same day for the $100 profit. Will I have to wait 2 days to use the $6,000 again or will the unsettled funds just be that extra $100 profit?

[@TCTrading]

It will be $6,100 available next day if it was an options trade or 2 days if it trading shares.

[@Plumbing.repairs]

@@TCTrading Thank you for responding back fast. Appreciate the video.

[@CanyonsCarver]

​@TCTrading I have a question for you. I have amargin account. question is, If I purchased a stock before 4pm(regular hours) today. What's the earliest I can sell it in order not to get a PDT?

[@daningoku5712]

Hey I was looking into this and I had a quick question , say I have $1000 in my cash account and I make a trade profiting $100. Can I use this 1100 to day trade the same day or do I have to wait 2 extra days ?

[@TCTrading]

If you used the whole 1,000 to make 100 once that money all settles then you can trade again. Stocks 2 days, options next day. If you used $500 to make the $100, you can still trade the other $500 right after or the next day

[@chandang7492]

If I switch my account to cash account. Can I use money from buying power right the way?

[@TCTrading]

You will need to wait a few days for the switch the process but once it switches over you are good to start using buying power

[@aamirsandhu2399]

Hey question!! So with a cash account, say I have $45 in my account if I buy a contract for $45 and I sell it for $55 in the same day, how much money will I be able to trade with the next day? Can I use the $55, the $45, or the $10 that I made?

[@TCTrading]

The next day you will have $55 to trade with

[@Emjayfuntoshi]

@@TCTrading if i sell at 3:50pm today will it be settled by the next morning ??

[@RandomBoysXD]

@@TCTrading can you trade with the $45 you spent that day on the same day

[@TCTrading]

@@RandomBoysXD No not the same day. Will need to wait for the next after already trading it that day

[@materiialart8226]

In the next day you should have 55

[@TheGamingInvestor]

I max out my trades on margin account, then switch to cash account. Wondering if you can still switch and operate if you switch to cash account WHILE flagged as PDT :O

[@tombucannon]

It says nah

[@calvintdo]

Question if you are flagged as a PDT can you still switch to a cash account?

[@penilechicken3065]

I need to know this as well

[@TCTrading]

I have not found a specific answer to this but I would think so. Or, you can try reaching out to support and they may take the PDT flag off the account after a first offense. From there you should be good to go

[@JUANGARCIA-bs6ev]

I was flagged as a day trader and it says to switch to a cash account to resume day trading

[@eligreg99]

Does nobody see how criminal this rule is? It doesn’t help the average investor. This rule only benefits those with a lot of money to play around with. This rule has cost me more money than it’s ever helped me make

[@jasondavis2995]

Learn to trade better.

[@eligreg99]

@@jasondavis2995 Ah, I found the last survivor from the abortion bucket.

[@tortuga3]

​@@jasondavis2995 exactly 😅

[@benmangino2249]

Ive watched many videos no one answers this question. If you switch to cash account and your trading options do you have to buy the stock amount for the option?

[@TCTrading]

No you can still trade just the option contracts and sell them before expiration

[@benmangino2249]

​@@TCTradingthank you 👍

[@NunetTV]

I have a question so if i have 25k in my brokerage i can pattern trade as much as I want

[@TCTrading]

yes

[@aggrokatzi]

If I, for example, buy 10 shares of Mercedes Benz Group, 10 shares of Apple, 10 shares of Sony and 10 shares of Wayfair on one day, and then sell all of them on the same day, does that count as 4 trades during the day or 1 trade? I’m guessing 1 but not sure.

[@ericrowland3246]

Correct, it doesn't matter the amount of shares tho, its the amount of times you buy or sell.

[@deepee3689]

every trade that u make counts as a trade so each time u hit that sell button it's a trade

[@CanyonsCarver]

You'll get 4 strikes, because each count as a day trade.

[@mahkel666]

can i use up my margin account till a notification comes that im close to my limit being flagged as a PDT then switch to cash account? Also if my portfolio is more than $25,000 i can do unlimited trades for 1 stock? I wanna keep buying and selling NVDA ex. buy in for $200/share then sell it after 5mins for $210, then rinse repeat till how many times I want?

[@sluttyslice4540]

You can but if you made trades on margin account it’s gonna take 2 trading days to settle

[@Pryda-Z]

I lose my gold membership tho

[@Deleted800]

Or u can just have both a cash account and a margin account that’s what I decided to do

[@materiialart8226]

IS THIS TRUE? CAN YOU DAY TRADE ONCE A DAY WITH A CASH ACCOUNT? I NEED CLARIFICATUON

[@TCTrading]

Yes there is no day trade restriction on a cash account. You just cannot use unsettled cash to day trade.

[@materiialart8226]

@@TCTrading thank you my brotha, I will try this method.. 👌 I'll open a cash account.. 💸

[@LifeVersity]

Solid i didn't know this. i shared vid on stocktwits too sure ppl would like to know this

[@TCTrading]

Much appreciated! Yeah good stuff to know. Honestly these days the PDT rule isn't such a big deal imo.

[@richwil5281]

So if i sell at 2pm do i have to wait till 2pm the next day in options.

[@TCTrading]

No, the next morning you will be good to go. Just need to wait overnight.

[@zhara2585]

Basically the rule makes it so you cant sell and save your losses.

[@OneNickADay]

Starting my trading journey again after burning 14 k of my hard earned money being a delusional few years ago. I was basically gambling back then. Now managing risk is the most important step for me and understanding fundamentals and technicals. you'll never be successful if you give up. Lets get this knowledge!

[@DieselNutz]

Click bait

[@darthstarone3532]

Poor stay poor while the stock goes on blue sky break out 😡

[@WildWestPros]

You can’t open multi-legged options on Cash Account

[@Scorpio77902]

Thanks