maxopedia

NASD Rule 2520 bugs me sometimes. It's a real mixed blessing. On one hand, it keeps me from trading too much and really considering each and every one of my decisions. However, sometimes I'd like to be able to re-enter and scale in or out. At my current level, I would not allow myself more than 5 trades in 5 business days, but the Pattern Day Trader rule is even more restrictive than that, at its 'acceptable level' of 3 daytrades every rolling 5 business days.

However, if you really want to, you can have the ability to avoid the pattern day trader rule. Simply have more than one brokerage account. Since I already have both a Zecco Account and a SogoTrade account, I can do up to 6 intra-day positions every rolling 5 business days. I don't believe I will take advantage of this fact.

Apparently the reason this is possible is because the pattern day trader rule only applies to individual accounts, not individuals. If anyone knows that this is not the case, please let me know. The only commentary I turned up in a simple web search was on this random website.