How should the current PDT margin rules be fixed?

Q

qdz

We know there are tremendous problems introduced by PDT margin rules. Let's be constructive to work out some suggestions on fixing these problems. How should NASD fix these problem and improve their responsibility for a fair market place. It is also should be realistic for brokers to enforce the new rules. This will benefit more parties than what the current rules does for.

My suggestions are,

1. The simple naive criteria 3 day trades in 5 consecutive business days should be reconsidered.

2. non-marginable trades with no free-rides such as (long stock options) should not be restricted by rules.

3. Size of transactions may need to be considered in the rules.

Please more advice.

For general discussion on "PDT rules must go", please go to,
http://www.elitetrader.com/vb/showthread.php?threadid=10636
 
Margin rules should not be applied to trades of non-marginable items.

Restrictions should not be based on number of trades. This restriction actually encourages people to make larger trades rather than make several smaller trades. And encouraging people to make larger trades increases their exposure to risk.

If these rules are to continue, let them be applied to all traders equally. Then it would be fair.

And then you would see how quickly all these people who support the daytrading rules now would start screaming against them.
 
it's not the amount of money....it's the amount of experience...I don't think that a 20 year old kid who has just inherited his trust fund is qualified to day trade because he has over 25k...i think if you have over three years of stock market experience and sufficient net and liquid worth, you should be exempt. three years isn;t even that much experience but it's better then nothing.
 
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