Many traders start out with a few $1000's get over $25,000. Then they have Unlimited trading but they are not ready for that and start losing the money back and then get restricted etc etc. They would have been better off just trading in a cash account.
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Brian!
I'm using cash account for only trading one way. I never short or buy option and I wonder how it works if I keep that way for my trading life.
how about you Brian?
I think what he is saying is buying and selling all day with no game plan will hurt you in the long term. The PDT rule with an account less than 25k motivates new investors to time their entry, define their risk, and be patient. Stop losses, limit orders,
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I disagree, I couldn't make money being new to trading and having the PDT rule. Stock would tank and I had no trading days left to get out of it. As soon as i got to 25 k my account doubled
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The biggest reason for failure is being under capitalized. At just $25k any serious mistake, just once, will jeopardize your account and ability to trade. You cannot be all in continuous and expect to be profitable.