When I started trading in 2017, I lost almost every month for close to 20 months. I had no real strategy or emotional discipline.

But there was another problem I had no control over.

In three weeks, that problem goes away for good, and if you don’t understand what’s about to change, you won’t know how to take advantage of the best market in years.

I’m talking about the PDT rule, which limits accounts with less than $25,000 to three day trades per five-day period.

I now have over $25 million. I’m not worried about the rule. But I remember when I was…

So I would take a trade, it would go against me, I’d cut the loss, and then I’d be stuck. Another setup fires. I’m watching it run without me because I already used a day trade getting out of a loser.

That’s a brutal way to learn. I always say cut your losses as fast as possible when something’s not working. But you can’t do that if you’ve maxed out your weekly trade limit, courtesy of PDT.

The Rule Change and What It Does

You still have to know your setups, cut your losses fast, and earn the right to size up. Freedom to trade more often just means more chances to blow yourself up if you don’t have a system. 

But if you do have a system, you just got handed a much better training ground.

What excites me about June 4th is the liquidity angle. More accounts able to day trade means more money flowing in and out of the kinds of stocks I specialize in. 

Low-float OTC names that can go from 20 cents to a dollar, or from a dollar to $5, on the right news with the right volume behind them. 

People are going to gravitate toward these low-price stocks, the ones below a dollar, below $5. They’re going to want to buy a lot of shares at something cheap and watch it run. 

More supernova setups are coming. 

You Have 3 Weeks…

This morning I told my students to wait. The market was moving everywhere at the open and everyone wanted in. We sat on our hands until 9:56 AM, when JZXN had a volume burst through VWAP and through the high of day.

I got in at $145 and paid myself along the way. Clean trade. No chasing.

That is what the next three weeks are for. Not waiting for June 4th to start learning. Getting your entry conditions so dialed in that when the setups fire with three times the volume behind them, you already know exactly what you’re looking at.

Call your broker now and ask them when the change takes effect for your account. Some will flip the switch on June 4th, others will need paperwork. 

Find out before you assume you’re free to trade and get locked out on the best day of the year. 

Then get in reps. Watch the patterns. When June 4th hits and that volume starts pouring in, you’re not going to have that problem anymore of cutting a loss and watching the next play run without you. 

The freedom is coming. 

What are you gonna do about it?

Stay ready, Jack Kellogg