This post is part of the LTD Project where I am teaching a group traders to become part of my team. If you would like to get updates on the LTD Project, interested in how I make money in the markets, or want to learn how to be day trader in my training program, sign up for my e-mail newsletter below:
So I called the young man that was ingenious enough to create is own day trading system in order to day trade outside of the day trading pattern regulation.
- Pattern Day Trading Rule – Any customer who executes 4 or more round-trip day trades within any 5 successive business days. If, however, the number of day-trades is less than or equal to 6% of the total number of trades that trader has made for that five business day period, the trader will not be considered a pattern day trader and they will not be required to meet the criteria for a pattern day trade. Copy and pastes from this post at the SEC.
Essentially what this means is that you have to have a lot of money, or $25,000 to be exact, to avoid the pattern day trading rule. Who exactly has $25,000 to get started trading? I actually took out $25,000 in student loans when I first started trading and he was building his account slowly in order to be able to make money on the side and eventually make this a career.
He was trading penny stocks and doing it in a way that he could avoid the rule and making money at it.
I was really impressed because he was making small bits of money consistently and was able to avoid the regulation all together by keeping his volume low and his holding his positions for around 4 days.
One of my trading partners highly recommend the first trader and swore by his character and work ethic so I was ready to give it a go. This was way before The Day Trading Academy ever existed and I was willing to try anything to get this idea up and running.
What we decided to do was wire $10,000 the next day
No contracts, no email confirmation, the first time I ever actually meet Trader #1 was on the phone and I decided to send him $10,000 the next day to make me something.
I asked him what he could do with $10,000 and he said that the he could possibly double it in 6 months time. Being the foolish young man that I was at the time I jumped on the promise that someone could make me 50% return on my money in 6 months.
I mean it’s 50%, it’s as sure as Trump not having fake hair
We were on our way, I finally found my first person to make me some money and I was as happy as I could remember. I had finally “made it” with my money working for me instead of me working for it day trading eminis.
The next step with Trader #1 would be to have him start trading the eminis using my Congressive Trading Strategy that I have refined over the last 10 years. Hopefully I won’t live to regret handing a person right out of a high school $10,000 with no legal contract. Should be an interesting experience.
Don’t forget to subscribe to LTD Project updates below!