Original Question: I’m new to trading and i have a small account. Do you have any recomendation to trade in a margin account around pattern day trader rule? Should i switch my account to cash?
I have only recently started to think about this topic in more detail and it will be covered in a future article.
I never traded a cash account because I didn’t know it existed back when I opened my first account in 2010/11. It is a double edged sword. The problems with trading a small account are manifold. You actually should learn to trade properly from the start but that could mean that it will take you a long time to reach a larger account balance and thus meaningful returns. You also want to get the major sandtraps out of the way early on. Getting them out of the way means to step into them as you won’t be able to dodge them. For me it was a long journey and I recall that I had a lot of trouble to trade up above the 25k barrier back then. It was all psychological.
With my knowledge of today I would approach my early trading years differently. First of all I would start with a c