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Get Prepared Now for No PDT Rule

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Written by Timothy Sykes
Updated 5/21/2026 6 min read

So, the PDT rule is going away on June 4th.

I’m very excited about this (it’s been going on for 20+ years).

But I’m also a little concerned for anyone who’s not prepared.

When the PDT rule started in 2001, it was after I’d made the majority of my first big wins.

So, I was WAY over the $25,000 minimum balance.

When it first came in, I hated it…

“This is un-American. Screw the SEC. This sucks.”

But as I got further into my teaching career, my opinion changed…

“This is good. You need to protect the newbies from themselves. If they just trade all day they’re going to lose.”

The reality is…

It doesn’t matter what you or I think. The PDT rule is going away.

What does this mean and why should you prepare now?

Let’s dive in…

Penny Stock Mania Is Coming

Here’s what happens next and what you need to do to prepare NOW…

If you’re trading with an account under $25,000, you are going to have a LOT more freedom to trade however you want.

But like Spider-Man teaches…

With great power comes great responsibility.

I don’t think many people with less than $25,000 understand this…

Quality Beats Quantity In Trading

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I think a lot of unprepared traders are going to churn and burn their accounts faster than ever before.

In fact, I think a lot of them are going to miss the PDT rule.

Image created by Google Gemini
Image created by Google Gemini

They’ll be saying “I used to be protected from myself.”

My business as a teacher is going to boom because a lot of newbies who didn’t think it was important to invest in their education are going to lose more.

Is that you? If so, NOW is the time to invest in education.

If all you have right now is time…

My YouTube channel has over 3,200 videos.

My team and I add new videos every week (there’s SO much free information there).

You only have two weeks to prepare. 14 days from today. That’s not much.

To put things in context…

Compared to when the PDT rule first came into effect, the opportunity to trade has already expanded FAR beyond what any single trader can handle.

How so?

Trading Windows Are Never Closed

You can literally trade 24/7 if you want (I’m NOT suggesting you do).

Image created by Google Gemini
Image created by Google Gemini

I’m already trying to get students to stop overtrading (like me).  

But if you think about it…

When I started, we traded the first 90 minutes and the last hour of the day.

Now?

There’s premarket trading from 4:00 a.m. on.

Even though most brokers put restrictions on trading before 7:00 a.m., you can get the restrictions lifted.

Then there’s after-hours trading.

And some brokers allow you to trade with other people using the same broker 24-hours a day.

If you’re into crypto you can trade 24 hours a day, 7 days a week, 365 days a year… .

As if that isn’t crazy enough, when there’s no more PDT rule…

It’s going to be pandemonium.

I think it’s going to open the floodgates up, specifically to penny stocks, micro-caps, and small-caps.

Get ready for a wild summer.

Start by checking out my friend Jeff Zananiri’s free presentation.

Jeff is considered one of America’s top “chaos” traders (seriously).

I can’t think of a better trader to help you start getting ready for the end of the PDT.

Jeff’s training is 60 minutes long and covers a structural market shift that started in 2022.

He’ll also go into how all the crazy volatility we’ve seen creates ideal conditions for trading.

The end of the PDT is going to be like pouring gasoline on the fire.

The question is, will you be prepared?

Join Jeff’s free presentation here 

Millionaire Moves

Every year I get to spend time on Italy’s Amalfi Coast with some amazing traders.

These are some of the best people in the world…

Get inspired, because this group just keeps growing. 50+ millionaires will turn into 100, then 150…

Will you be one of them?

If you’re serious about your education and want to go deep…

Apply for My Trading Challenge Now 

Every one of my 50+ millionaire students started in the Trading Challenge.

More Breaking News

Final Thoughts

I’ve only scratched the surface in this post.

If you haven’t watched the full video above DO IT!

Also…

There’s an old proverb: fortune favors the bold.

In two weeks, when the PDT rule is gone…

Fortune favors the prepared. 

Now go study.

 

– Tim Sykes



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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”