You can wake up early, do your premarket prep, and feel completely ready to crush the trading day…
But sometimes, no matter how sharp your plan is or how disciplined your execution feels, something unexpected steps in and takes control.
Not a bad trade, not a reversal, and not even volatility.
What’s not so unexpected is the massive gains we’ve been seeing on Monday mornings. And my setup is the perfect way to take advantage of this price action.
Here’s how it works…
Every Monday, the market kicks back into gear after its weekend nap… and that reset creates a unique opportunity.
As the first session of the week gets started, there’s a specific pattern we look for that appears again and again with uncanny consistency.
And it has delivered some unbelievable gains!
Take yesterday…
Leap Therapeutics (NASDAQ: LPTX) shot up over 500%* on the announcement of its new digital asset strategy.
We hunt for these kinds of Monday morning spikes every single week.
Now it’s time to learn how to spot them for yourself…
Watch the video below for the full trade breakdown and strategy tutorial on my Monday Setup.
So what is it that can pull the rug out from under you when you’re staring down the perfect setup?
Something buried deep in the system can stop your momentum cold.
And if you’re not careful, it can lock you out of your own account, kill your rhythm, or turn a winning trade into a disaster before you even know what hit you.
Table of Contents
The Two Trading Rules I Can’t Stand
I’ve been trading for decades. I love this game… the thrill, the pace, the grind, and the personal growth it forces out of you.
But there are two rules that I’ve been calling out for years because they hold traders back instead of helping them.
#1: Volatility Halts
You’re in a fast mover, volume’s exploding, momentum’s on your side, and then suddenly… everything stops.
A volatility halt hits. The trade freezes. You’ve got no exits, no entries, no control.
For new traders, it’s terrifying. For experienced ones, it’s just plain frustrating.
Read my blog post on volatility halts to learn more about what causes them and how you should react.
#2: The Pattern Day Trader (PDT) Rule
Now, this one, I really hate.
If you’ve ever joined me for a Pre-Market Prep or other Daily Income Trader session, you’ve probably heard me say it:
“The PDT Rule is one of the dumbest things in the history of dumb government decisions.”
If I were in power, it’s one of the first things I’d get rid of… No joke!
What the PDT Rule Actually Says
The PDT Rule applies to anyone using a margin account. It requires you to keep a minimum of $25,000 in that account if you want to place more than three day trades within a rolling five-business-day window.
It came out of the 2001 dot-com bust, when regulators thought too many small traders were taking wild risks on internet stocks.
And it doesn’t matter if you’re careful, experienced, or strategic…
If you have $24,999.99 in your account, you’re stuck. No fourth trade and no flexibility.
Just plain old crappy bureaucracy.
Why the PDT Rule Is So Dangerous
If you’re trading volatile stocks (my personal favorite playground), this rule can wreck your momentum.
The worst part? Breaking the rule isn’t usually about being reckless. It’s often just accidental.
Maybe you:
- Jump into a setup too early and sell right away.
- Second-guess yourself and close out a trade prematurely.
- Or fat-finger a ticker, buy the wrong stock, and instantly exit to fix it.
Each of those counts toward the PDT limit. Hit it, and your broker can freeze your account for 90 days, or until you bring your balance above $25K.
Imagine being benched from trading for three months.
The Big News: Change Might Finally Be Coming
This announcement made my day!
After years of traders pushing for reform, FINRA has finally taken a step in the right direction.
Regulators are working to remove the $25,000 minimum for active day traders.
They’ve acknowledged that technology, access, and education have advanced far beyond what existed in 2001.
It’s about time.
Here’s what this could mean:
- More freedom for smaller accounts to grow through active trading.
- Better accessibility for new traders to learn by doing.
- A likely boost in liquidity and trading opportunities across the market.
It’s not official yet, but it’s in motion, and that’s a very good sign.
How to Stay Clear of the PDT Trap (for Now)
Until the change becomes law, here’s how to protect yourself:
- Trade with a cash account: The rule only applies to traders with margin accounts.
- Track your trades daily: Don’t rely on your broker to do it for you.
- Keep a detailed trade journal: It’s the best insurance against mistakes.
- Mix in swing trades: This allows you to stay active without triggering PDT.
Remember, some brokers are stricter than others. Break the rule once, and they might lock you out for months.
My Final Thoughts…
Until regulators officially pull the plug on the $25K minimum rule, you’ve got to play smart.
Understand the rolling five-day window — write it down and memorize it.
If day trading feels too restrictive, swing trading might be your best move. It gives you flexibility to have a life, and best of all, you can forget about the PDT Rule.
Don’t let outdated rules trip you up or slow you down…
Stay disciplined, stay patient, and trade smart, because when the rules finally catch up to the modern market, you want to be ahead of the game.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
These are the stocks I’m watching in this hot sector.
Is your trade a box checker? I hope so.
I love this setup that shows up almost every day. Learn it for yourself.