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Update on the PDT Rule Change

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 5/11/2026 6 min read
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Right now there is SO much opportunity in the market.

And there’s even more opportunity looming on the horizon.

Why?

Because of the massive changes coming around the PDT restrictions.

But there’s one catch…

The rule change is coming up fast.

When the PDT goes away, volatility and liquidity are going to spike (and it could get wild)…

That’s why I went live with Jack Kellogg (with a special cameo by Mari) about the PDT rule.

Because you have three weeks to get your house in order.

Check it out…

The Setup

It’s the end of an era.

For those of you who don’t know…

The PDT Rule limits accounts under $25,000 to 3 day trades per 5-day period.

That’s not many trades. Obviously, you can take overnight trades but those are riskier.

Picture the millions of accounts…

$10K, $12K, $16K…

Anybody under $25K.

Previously, they could only do three day trades per week.

But after this change takes effect?

All those traders are going to have the freedom to go in and out of trades as much as they want.

Which is why you want to learn as much as you can NOW… ahead of time.

Watch the full video as Jack and I discuss it…

Jack Kellogg & Timothy Sykes LIVE PDT Rule Change Explained

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Here are a few key takeaways… 

  • Don’t be an idiot. Yes, the rule change gives you much more freedom. But that means you have to avoid overtrading.
  • I don’t know exactly how big the influx of cash is going to be in three weeks. But it’s likely to be more towards low-priced stocks because that’s where small account traders lean.
  • You need to talk to your broker. Contact them to find out when they are making the change. You might need to do some paperwork.
  • After that, it comes down to… are you prepared?
  • Focus on protecting your capital. You won’t have to “save” a day trade now. So, if you’re in a losing trade, cut losses quickly. There will be ZERO reason to hold and hope (ever again).
  • You can gain a lot of experience very quickly when this change takes place. Use small positions and low or tight risk. Over, and over, and over again…
  • Remember what Mari said: the PDT rule was like a barrier to practice. So, when it gets lifted, consider every trade practice. It is NOT about making money at first. It’s about refining your process. If you keep that mindset, the PDT rule change will be the biggest gift ever.

Millionaire Moves

Speaking of volatility…

I took a trade yesterday (May11) on Odysight.ai Inc. (NASDAQ: ODYS) after the guys at StocksToTrade Breaking News alerted this…

Source: GlobalNewswire
Source: GlobalNewswire

The press release hit all the right buttons in the current market.

I thought I was late, but still gave it a chance…

By the way…

Not only does it look like this summer is going to be CRAZY for day trading stocks…

But Ben Sturgill’s options system doesn’t take summers off.

Today is the LAST day for you to join Ben’s free bootcamp…

More Breaking News

Catalyst Watch

Staying with this theme of the PDT rule change…

Do you remember the COVID market? If you weren’t trading yet, it was CRAZY.

First, everyone was sitting at home with nothing to do.

Then, the stimulus checks came.

Somewhere between 10 million to 20 million people opened brokerage accounts and started trading.

What stocks do you think they bought the most?

Low-priced stocks. The same stocks that Jack and Mari and I trade.

Okay, Jack trades all kinds of stocks now, but back then? He was absolutely CRUSHING it on penny stocks.

The PDT rule change could create similar trading conditions

On My Radar 

Beware of scammers and impersonators.

I will NEVER DM you, send you links to a dodgy Telegram channel, or contact you.

The ONLY place I interact with students is in Trading Challenge chat.

Also, I don’t trade crypto, forex, options, binary options or ANYTHING other than the trades I post publicly here.

I do NOT have any assistants, or any other ‘helpers’ on X/Twitter or ANYWHERE else.

My team and I play a constant game of whack-a-mole trying to rid the world of these scammers.

If you see anything that looks like this…

REPORT and BLOCK! 

Thank you in advance.

Key Takeaway

You have three weeks left to prepare for the PDT rule change.

This is the biggest change to trading in 25 years.

Prepare now to take advantage of it!

Cheers,

 

– 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”