By now you have heard about the new rules and the term "Pattern Day Trader".  These new rules HAVE been approved, and are scheduled to take affect Sept. 28, 2001.

    When I first read these rules early this past summer, it did not take long for me to realize that these new rules would have a serious impact on all investors.  And in early July I imposed these rules upon myself to just see what effect it would have.  And yes, it did have a big impact on my trading strategies.  But by adapting to the rules, I was able to generate a 30% gain by the end of Aug.  This was in just 8 weeks.  

    I have written a report that looks at these rules in detail, and explains what they will mean to you.  I explain how the new margin requirements work, and what happens if you get a margin call.  If you are unaware of the new margin rules, you could be in for a rude awakening because they now have teeth to them.  And I show why you can't day trade in a cash account.

    For the investor with less than $25,000 in your account, you will have to work very hard to NOT be classified as a PDT.  It only takes a very few day trades within a week (4 daytrades in 5 business days) to get you classified as a PDT.  The definition of a day trade is the buy and sell of a security in the same day.  If you buy a stock, and get stopped out of it that same day, that is a day trade.  Once your trading activity classifies you as a Pattern Day Trader, if you have a small account (LESS THAN $25,000), the consequences can be quite troubling for you.  Your account can be restricted, or CLOSED!  In my report I show a new approach that I am using to determine an optimum time for entry and exit of my trades.  This is a simple manner of looking at the charts on a stock.  This is how I was able to enter trades that I could hold overnight and not have to make a daytrade.  Also in the report, I present a method that can be used, so if the stock starts to go against you on the day you enter the trade, you can STOP THE LOSS, and NOT create a day trade!

    ItsInTheCharts has been the only web site that has spent the time to study these rules, and to develop a strategy so the average trader can live under these rules, and this was done BEFORE the rules take effect.  This report recaps my experiences of living under the new rules, what impact they had, and what I did to adapt to them, and the strategies I used to generate the gains.  In this report, I present a strategy that can be used by investors with both large and small accounts.

Examine the PDT Report