PDT Rule Change: Get Excited for the New Money Mania

It finally happened, we got the change of the Pattern Day Trader (PDT) rule.

Read on for more about how the change affects you but first, this from my friend Ben Sturgill:

LIVE: 2-Day Virtual

Trade To Live Bootcamp

Join Ben as he shows you his low-stress options system

To be honest, I didn’t think the PDT rule change would ever happen. The government moves so slow, I thought it would be there forever. I’m excited about the change, but there are two points to keep in mind.

Here’s the Daily Accelerator agenda for today:

• The Big Picture: How to view the PDT rule change based on your experience. Plus: the moves this is gonna amplify!
• Watchlist: What happens when a shoe company becomes an AI company?
• On My Radar: The tortoise and the hare, Wall Street’s aging coffee tasters, and quantum’s new operating system.

The Big Picture

Two things to consider about the PDT rule change:

#1: If you’re a new trader, please be cautious.

There’s nothing wrong with a cash account in the beginning. If you’re brand new and struggling, ask yourself this question:

Is more buying power, using leverage, going to fix that?

I always like to keep you safe and grounded.

So if you’re still struggling, just stick with a cash account. Leverage is probably the last thing you need right now. Don’t fall for the temptation of a margin account.

That’s like giving a teenager the keys to a Ferrari. Stick with a Camry for now.

Get a margin account once you’re consistently profitable. Once you’ve built the foundation, then you can use leverage to increase your gains.

Remember, leverage doesn’t only increase gains. It also increases losses

#2: Get excited for the new money flow.

We flat-out know this is going to bring a lot of irresponsible behavior. So many people won’t pay attention to point #1 above.

It’s going to get people excited. They’ll start trading on margin when they shouldn’t. People who weren’t trading because of the PDT are going to flood the market.

Do you know where they’re going to go?

Low priced penny stocks.

My Take

Get excited. Be smart. Be one of the responsible penny stock traders and take advantage of the money flow. There’s gonna be new money mania for a while once the rule change comes into effect.

Again, if you’re new, stick with a cash account. You can still take advantage of the new money flow. Down the road, when things are going well, you can look at adding leverage.

Watchlist

Every day there are just amazing alerts from my services. This one was all the hype yesterday.

Allbirds, Inc. (NASDAQ: BIRD) basically went bankrupt making shoes and now they’ve declared themselves an AI play.

I called the RCT in Premarket Prep:

By the time the market opened, it was already a win so I sent out a Daily Market Profits Alert with a solid trade plan:

But even I had no idea BIRD would do this…

What an amazing runner. Daily Income Trader students were prepared. Were you?

On My Radar

• Nvidia CEO Jenson Huang says with its new model, ”AI becomes the control plane – the operating system of quantum machines.”
• I prefer to drink mine, thank you. That said, hats off to Wall Street’s coffee spitters.
• A tortoise and a hare raced to space. We all win this one.
• BONUS: The PDT rule change announcement for your reading pleasure.