What does the Day Trading Rule under/over 25k work?

Asked 3 years ago

I've heard that the Day Trading Rule over 25K can be a way around the Pattern Day Trader (PDT) rule and would like to know how I can implement it?

Day trading rule over 25k Pattern day trader (pdt) rules

Osasere Okunloye

Sunday, September 05, 2021

﻿The day trading rule over 25k means that when a trader's margin account has over 25k, the trader can trade as much as they want so long as the account does not go below 25k. To avoid the PDT rule, 
Switch to a cash account 
Plan your trades 
Use a bigger time frame 

Andia Rispah Igobwa

Thursday, September 09, 2021

A pattern day trader must maintain at least $25,000 of equity on any given trading day (the PDT rule). If the account does not meet this requirement after five business days, it is restricted to only cash-based trades for 90 more days or until the minimum amount has been met.
If the amount is still below $25,000 after that time, the account can be liquidated.
Since day trading involves buying assets at one point in the day and selling them shortly afterward, it isn't easy to maintain $25,000 of equity for an extended time. 
Therefore, if you plan on using this strategy to leverage your assets, you should only carry out the process after making sure that your funds are fully available. 
If they aren't, increase the amount of cash in your account to keep trading for at least five days.