>>> We’ll do some live trading and cover stocks making interesting moves as usual — Profit Panel starts at 2:30 PM ET, click HERE to JOIN Live! <<<
Most traders see the Pattern Day Trading (PTD) rule as a handcuff. If your account is under $25,000, you’re capped at three round-trip day trades in a rolling five-day period. Frustrating, right?
Not necessarily.
When I look at the numbers, the biggest winners we’ve had recently didn’t come from quick scalps — they came from holding overnight.
Here’s the thing: When you hold past the close, you give the market maker’s aggressive buying more room to work. A lot of times, that momentum continues over the first 24 hours, not just the first 30 minutes.
Why Overnight Holds Often Beat Day Trades
I trade a lot, so if I see a quick 20% move, I’ll often take it and move on. I don’t want to think about it.
But members who hold overnight? They routinely beat my returns on the same setup.
Recently, we’ve shifted hard toward overnight holds in the Free Ride Scanner. I’d say close to 90% of our trades have been structured that way. We had a nice sell-off that gave us cleaner levels to work with on the rebound.
Earlier, when everything was hitting all-time highs, I was happy grabbing 20% and stepping aside. Now we’ve got room to let a breakout trend.
If you’re really worried about having to swing a trade but still want flexibility, there’s another path people overlook — a simple cash account.
That removes the margin component entirely, which means you don’t have to track day trades the same way.
It gives you more breathing room if you’re still building confidence in overnight holds but want to avoid burning through your three allowed trades.
If You’re Under $25K, Let the Rule Work for You
If you’re working with a smaller account, don’t fight the PDT rule.
Use it.
Let your winners run overnight instead of feeling pressured to close before 4 p.m. ET just to avoid burning a day trade.
A quick note, since I get this question a lot: if you genuinely hate holding overnight, a cash account is an option many traders forget exists.
It slows you down naturally because you need settled funds, but it removes the stress of margin rules entirely. For some people, that alone keeps emotions out of the decision-making process.
The market doesn’t care about your account size. But it does reward patience when the setup is right.
To better trading,
Alex Reid
WealthPin
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram:https://t.me/+MKMN30kDmVkwMDdh
- YouTube:http://www.youtube.com/@heywealthpin
Important Note: No one from the WealthPin team will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
Ps. I’m Still Giving Away FREE Access to My #1 Scanner
Would you be trading earnings next week?
Well, I would. And the one tool that would come in handy for me as we head into earnings season is the Free Ride Scanner.
As Wall Street funds flow massively both in and out of certain stocks…
You’d need a powerful engine scanning the order flow and feeding you both the names that are seeing the bulk of Wall Street’s funds…
As well as the best way to capitalize on that move for healthy payout opportunities.
Granted, I can’t make reckless guarantees on the market here…
But that’s exactly what we’ve been doing over the past couple of months, and earnings season sends our little party into overdrive.
So if you’d like to get in on the action… and even get FREE access to the Free Ride Scanner…
