Over the years, a LOT of people have told me that they had to “get over the PDT rule” before they started trading.
Here’s what I’ve always said…
That’s just an EXCUSE.
But guess what? Now that the PDT rule is gone… (Read more about how this is the biggest change to trading in 25 years here.)
There is NO EXCUSE!
Sadly, many of those same people haven’t started trading.
They’re STILL trying to save money so they can start with a bigger account.
If that’s you … STOP!
That belief is costing you time.
In the market, time is the ONE thing you can’t get back…
Yes, the PDT rule was real. But not only is it gone, it was never the problem.
It never stopped anyone from trading profitably (EVER).
The only thing it really did was to stop the average person from trading recklessly.
The irony is, the traders who waited and saved $25K were the same traders who blew up their accounts the second they hit it.
Why?
Because they used the excuse of not having enough money to avoid studying. They didn’t build proper risk management into their trading process first.
If you need a refresh on risk management, read this.
The reality is…
Most People Wait Too Long To Start Trading
The market keeps going, whether you sit on your hands, take a vacation, or just procrastinate getting started.
And with the market we’re experiencing right now…
You need to capitalize whether you’re ready or not.
What does that mean, exactly? By capitalizing on this market, I mean you should start today.
Look, there have ALWAYS been workarounds for not having much money to start.
You can use the same workarounds starting today:
1. Paper Trade. Many platforms have a paper trading feature (as do most broker platforms).
2. Use a cash account. You have ALWAYS been able to trade every single day, as long as you used settled funds.
3. Swing trade. Hold positions overnight. The PDT rule only ever applied to same-day round trips.
Let’s unpack that last one, because my Weekend Trader strategy is an example (and it’s so simple). You buy a stock on a Friday and sell it on Monday.
You could’ve done that every single week for the past quarter century.
The crazy thing is, it’s been my most consistent strategy.
So, the workarounds to “not enough money to start” have ALWAYS existed.
The problem has always been about mindset.
Develop a Millionaire Mindset
All my millionaire students had to figure out how to deal with the PDT rule. Every one of them chose the right mindset over excuses.
Including Jack Kellogg, one of my most successful students…
Jack Kellogg is proof that you don’t need $100K, $50K, or even $25K to start.
He worked as a valet to save money to trade. At one point, Jack even went into business selling bamboo pillows in a Connecticut mall…
Source: Millionaire Media, Jack Kellogg
Jack joined my trading challenge so he could learn, but he lost regularly in the beginning. (He lost most of his account in his first 18 months.)
Believe it or not, he almost quit in 2018 after losing roughly one-third of his account in two days.
Pay attention, because this is important…
Jack didn’t let being under the PDT, or not having some arbitrary amount of money, stop him from learning.
He studied every single day. He learned and optimized. At one point, he even took three months off to reset because he was so frustrated.
In 2020, Jack passed the $1 million milestone and he hasn’t looked back.
Here we are less than a decade after Jack first started and he’s made $25M+ in his trading career.
Aside from just being 100% dedicated to learning the process, one of Jack’s greatest strengths is his ability to identify momentum shifts and capture gains over longer time frames.
Of course, past performance doesn’t indicate future results. But Jack is a perfect example of what it takes to succeed at trading.
Trading is a game of learning, of making mistakes and learning what NOT to do.
And not only do you not need much to get started (except the right mindset)…
If you truly want success, I encourage you to start with less!
Pay the Market Tuition
Look, even if you can afford to start with $10K or $20K…
Start with less. Start with $2K or $3K.
The money that you make or lose in the beginning is negligible. It’s part of your “market tuition” and you have to be okay with losing it.
But here’s what happens…
People who start with too much almost always think it’s okay to lose more.
But if you have a $500 account, you can’t afford to lose it all.
I’ve seen some traders come in with $50K or even $100K. They blow it in a few months because they’re cocky.
If they have some wins, they blow it even faster (they mistake luck for skill).
Most of my millionaire students started with a few thousand dollars and turned it into life-changing money.
Why?
Because the small account FORCED them to learn and stay disciplined.
Each and every one treated it as a marathon and not a sprint.
And you should too. Start today.
If you have any questions, email me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Daily
