How To Avoid The PDT Rule On Webull | Webull Cash Account (Tutorial)

[@TCTrading]

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[@Ethan_Wright_1]

I found it very easy to avoid PDT rules by joining prop firm where no restrictions on number of trades.

[@popcycles]

T+1 on stocks now. 🎉

[@ianc.7727]

Thanks for the info. This verifies what i have set up is the best way. Wish i would have watched this first. Took me almost 2 week to get it right.

[@brandong6766]

Yea I've used both and I prefer the cash account. That pdt shit got on my nerves so bad lol. Once I understood good faith violation I was like ooh this is cooler, for me, and it really slowed me down from potentially losing more money, like discipline, as a new guy and all. I thought it was gonna be all easy... nope... I'm hedged, I own dividend stocks now, I have call options good for a year lol.... I just want to say thanks for all your hard work making this channel. It really helped and still helps alot... I put 3k total into my webull account now to learn the ropes. But I also have 40k in my savings account i want to invest PROPERLY... so I am learning all I can now and gradually start transferring it to my webull. Maybe leave 10k in savings for an emergency.. Responsibly adulting... or whatever they call it 🤣

[@TCTrading]

Awesome! I appreciate it. Exactly, no need to rush. Learn the ropes and as you get a better feel with time add some more in

[@ErnestoEduardoDobarganes]

Great explanatory vid.

[@cmartin7215]

Thanks for the video best one out and just subbed

[@TCTrading]

Awesome, thank you!

[@BISHSZN]

great video thank you !

[@EdwardCraven-s8b]

Thanks for the interesting content! 😍 Just a small off-topic question: 😅 I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I don't know what they are. What should I do with them? 🤷‍♀️

[@OutdoorMann]

I would like to start using Cash Account Please answer the following questions: 1. I will have unlimited daily tradings, correct? 2. For example, I buy 100 shares for $100, and then I sell it within 30 mins or so for $105, I now gain $5 in profits, I understand the $5 profit won't be available for 24-48 hours, but my question is Can I use my $100 immediately to buy other stocks? Thank you!

[@noxfomo]

no you have to wait for the next 48hrs

[@jorgesito..]

You can use it to buy another stock immediately for example if you sold and received 105 with $5 profit, you can immediately buy $105 worth of stocks. The problem is if you try selling them withing 2-3 days. That money is “unsettled” for 2-3 days including that original 100 and the profit you took. So if you sell your stocks, see the price go down 30 minutes later, you can buy. But if you see the stock keep going down you will need to hold until cash is settled or you will get a violation

[@HeelenHuenchun]

Thanks for the analysis! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). What's the best way to send them to Binance?

[@scottroberto9178]

Great video! Just subscribed! Interested in opening a Roth IRA with Webull, but first I just want to make sure that I'll be able to day trade options in the way you have described. Since Roth IRA's are cash accounts by nature, I should be able to... is this correct? Thank You

[@lyndellprosper]

Can I day trade Options with a Cash Account using Calls amd Puts as long as I have settled funds?

[@TCTrading]

Yes!

[@noxfomo]

option only take a day for the money to settle so you good

[@khakimsaidaliev7423]

what about tradezero? is there cash settlement?

[@hinesandshine]

great information

[@TCTrading]

Thanks!

[@miguel30215]

Looking to be a day trader. I honestly don’t really see much of a difference between margin account and cash account because you’re pretty much only allowed 3 day trades for both considering you have to wait 2 days for the cash to settle. I guess margin account is better overall. Is the only way to avoid this is by having 25k in a cash account where they give margin as well?

[@uncagedpine9589]

the idea is it takes the trade day, and two days inbetween for a cash account funds to settle. So this means if you have a account worth lets say 6000. You trade with 2000 monday, 2000 tuesday, 2000 wedsnday, and you can day trade every day. 1/3 of your total account each day.

[@avestuart]

@@uncagedpine9589 which should be fine considering it's good to only risk about 1% to 3% of an account per trade (which is what i've been doing). The only thing I don't like about cash accounts is that there isn't any short-selling. That part sucks. Do you know if there is any way around that? I've been trading Forex which does not have any sort of PDT rule. However, I want to trade indices and I'd rather do that from a US broker. I hate Metatrader, and using a US broker is all-around better for me. I'm considering Futures because those don't have any PDT rules, either. At least I could trade indices via the e-mini contracts. I'm not sure what to do here.

[@uncagedpine9589]

@@avestuart Well the only way I have actually tried is to use short ETFs so like SQQQ or SH. I saw an option on webull to apply for options when I was making a cash account on webull, but I have not tried it myself so I wont speak to if it is actually allowing shorts. BTW as far as I know webull does not allow for forex trading. I am not able to do it. Webull works for me because I pretty much only trade the Nasdaq ETFs (qqq, tqqq, sqqq). I pretty sure on TDameritrade (think or swim) you can trade forex. I jsut hated Think or Swims navigation system. And theyre doign that merge with schwab soon. I have not tried trading forex on TD ameritrade though. Hope this helps.

[@avestuart]

@@uncagedpine9589 Thanks. Right now i'm trading Forex off-shore but I hate Metatrader which is the most-used platform for Forex. I really want to trade indices. I forgot about inverse indices, though, so that might be an optoin. Or futures. This all makes my head spin.

[@MasterOfThinking]

@@uncagedpine9589 Also with a cash account u can day trade calls/puts and it settles next day. With a margin u have to wait bc of the PDT rule

[@eljunior6198]

Am i going to be able to put as much money as i want for the day trade with cash account or do i need to out minimum of 2k ?

[@TCTrading]

You can use as much or as little as you want

[@garykusnierz2108]

Thank you funding my account soon 👍

[@adamolivo9025]

Is the same with selling stocks? Can I sell multiple in one day on a cash acct?

[@businessinteresi4923]

Hey - does Webull has only 1 type of the Cash acc? And if so are you able to still trade Options with it? Can you Buy Puts on the Cash acc as well?

[@TCTrading]

Yes, and you can trade options on it. Options trades actually settle next day as well. You just need the appropriate options trading status which can be applied for on your account

[@kennethcordon]

Another great video! Quick Question. If I buy today and then tomorrow I buy more of the same stock to add to my current position then sell all my shares. Would that be considered a daytrade or a swing? And if you sold your shares in different increments throughout the day. Does each sale count as a daytrade also? Thanks,

[@TCTrading]

First question: yes that is going to count as a day trade. If sold in increments it will be one day trade (total) unless you add a buy in between then it will be more than one depending on how many buys you do between sells

[@tootory9506]

Can you trade with a margin account like a cash account?? So, as long as you don't use any borrowing, is it still under the PDT rule? In other words, does PDT only apply to trades I use leverage and borrowing on ? Or is it just because of the title/type of "margin" account? Then, in that case a cash account is the way to go, so that I can make multiple trades in one day with one share of stock. Just checking the technique/strategy say 5 to 10 times in the first two hours of the day. While waiting for those funds to clear, I will use other money in my cash account for the next day, etc. ? Yes? I feel realistically for a beginner you shouldn't even take a chance of having borrowing power... it's like giving a new driver a Ferrari- (too much power with a higher risk of crashin)

[@JuanOchoa-k7m]

Dude all the other videos I watched never mention anything about being able to do multiple day trades with a cash account. I’ve been trading with a cash account for years but avoiding multiple trades because I thought I had the day trading rule.

[@ctez1023]

I really learned something from this video

[@ohKonTTV]

for more clarification, I can day trade more than 3 times a day all week as long as I have settled cash available to use?

[@TCTrading]

Yes on a "cash" account

[@quincy22]

Does a cash account have instant deposits?

[@KobeBBryant]

Late but no

[@FirstLast-rz3iz]

My question is say I have a cash account and I buy a stock at $100 and a few minutes or hours later in the same day I sell it for $110 it will take 2 days to settle but in 2 days let’s say the stock is now valued at $70. Will my account be worth $110 or $70? Please answer this very urgent question. Thank you.

[@smartgold7435]

When you sell you no longer have stock so there no way you can lose value

[@KawaiiAznPanda7]

I need to switch to a cash account but I need to pay off my negative cash balance. How do I do that?

[@TCTrading]

Close all positions and add cash to your account if necessary

[@KawaiiAznPanda7]

@@TCTrading done thanks! Sucks I lost all that money though :/.

[@armandolopez6365]

how much margin you get with 2k account ?

[@willywonka077]

I am confused how can I make 10 trades a day ??.. it's telling me settled funds unsettled funds violation I don't understand .. Thanks you in advance

[@TCTrading]

You will need to adjust your sizing. So if you have $1,000 of settled funds, 5 trades of $200 would work. If on a cash account, your biggest concern is the settled funds, knowing what you trade and how much time it takes to settle so that you can adjust your sizing to never "run out" of day trades. Not perfect for everyone, but especially options traders these days many brokers have next day options settlement so if I had a $1000 account and used all of it on a few options day trades, I will have $1000 settled cash available the next day

[@axa1588]

How many times buy and sell per day?

[@axa1588]

Should i wait for 2 days after i sold all stocks? I cannot buy again in same day?

[@smallonion34]

does T-1 mean its 24 hours? Or is it tmrw morning it will be settled?

[@TCTrading]

Essentially if I buy + sell today (tuesday) the funds will be available Wednesday AM by the open.

[@ivan-gq1sg]

@@TCTrading quick question, did you mean we have unlimited trade for options stakes? ? The following day fund will be settle down right? Am I correct? Thanks

[@brucewhite7457]

When I open my account can I stipulate I want a cash account?

[@TCTrading]

Yes!

[@brucewhite7457]

@@TCTrading that would avoid the 6 day waiting period right

[@TCTrading]

@@brucewhite7457 Yes as long as you select a cash account when opening. But for those with a margin account you will have to wait the 6 days unfortunately

[@acumen8791]

If you have both a cash and margin account on Webull does the trades you place in either account count towards your profile or is it account based? Meaning if I did have 2 I would get 3 day trades a week in my margin and unlimited in my cash account? I just want to make sure it doesn't track the trades from a user perspective but rather an account perspective. Anyone know? Might be a stupid question but figured to be safe than sorry.

[@gregorymalone1073]

Can't you just open a cash account with Webull as soon as you desire open your first account.

[@TCTrading]

Yes!

[@gardeningrelaxation]

where is Detail? Would be nice if you show it.

[@ejlabaria4194]

I think they changed the lay out since this video was posted. If you haven’t found it just yet; you no longer click into “Detail” and instead just click on top right corner menu button which looks like two lines with circles (after selecting the center button) and it Change Account option should be one of the top 3 options. GL, hopefully that helps.

[@danieldvs100]

I have a cash account with webbul and still almost got hit with. PDT any suggestions? Has anyone dealt with that ?

[@wokened]

only use settled funds

[@Collinsgaming-1]

Those using this app: are you aware that they lend your shares to banks that open positions against the very companies you hold?

[@jamesdean9373]

So to avoid PDT rule in a margin account simply don’t PDT in a margin account. Got it. Ty for the valuable information.

[@caseymorbitzer5656]

Option one is technically illegal and states that on the sec website. May want to nuke this video or edit video

[@jorgesito..]

I also think it’s kind of useless. Unless you’re the master if traders and can scalp every dip each day, you’re going to be spreading your money too thin. Yes you have more day trades available but each trade is worth less. At the end of the day you probably will make the same amlint

[@JacobLouis]

Class action lawsuit time!

[@Collinsgaming-1]

Boom 💥 Victor approves

[@Motorrad127]

So if I want to make three trades of $500 value in a day, I'll need $1500 in my account? And then I'll have to wait two days to make more trades and I can't use my own money how I want?? If I'm understanding that right, what a crock of shit this is. A person would need minimum 125k in an account to make money daily.

[@TCTrading]

3 $500 options trades in one day will all settle the next day to be used again, shares trades will be 2 days. $25K is the thresh-hold to have unlimited day trades on a margin account. Another way to avoid PDT is to trade futures where PDT does not apply.

[@Motorrad127]

@@TCTrading I was hoping to swing trade the TQQQ/SQQQ with spot buys.

[@TCTrading]

@Nick Figueroa You will need to convert the account to a margin account even after you hit 25K to get unlimited day trades with no restrictions. So I would aim to get a little more cushion over 25K before converting it if that is ultimately the plan. Kind of annoying, but that is just how it is.

[@TCTrading]

@Nick Figueroa All that matters is the account balance so you can use as much or as little as you want. If you are on a margin account and your account were to close the day with under 25K you will get a PDT violation. So as long as you close each day above even if you have open positions you are good. Thats why I like to recommend get a nice cushion over 25K and then make sure to keep the risk/position size in line to avoid a fall back below if you were to go on a red streak

[@TCTrading]

@Nick Figueroa Yeah the cash account is the way imo. Gives you the ability to take more setups and really figure out what is working vs. not working a lot faster.

[@wenami]

Sweet! 🧁