pattern day trader rule is a joke that must be cancelled
- Thread starter stockcik
- Start date
noob_trad3r
You really need 50K to start if you want to day trade.
I started daytrading stocks with a 200 dollar account. Lost a 100 and when I got it back, I increased my account size to 2000 dollars and averaged 200 dollars a day scalping. That was back in 1999. I averaged about 50 round turn trades a day.
You really need 50K to start if you want to day trade.
I started daytrading stocks with a 200 dollar account. Lost a 100 and when I got it back, I increased my account size to 2000 dollars and averaged 200 dollars a day scalping. That was back in 1999. I averaged about 50 round turn trades a day.
this topic has been complained,discussed by the trading community since the ptd rule was implemented in october of 2002, many retail daytraders just left the market and liquidity vanished for stocks. in the late 90's there was huge new group of retail traders from high speed internet access and discount brokerages.
The rule was to keep out as many people from competing with market makers in stocks. in futures and forex there are not market making rules. In stocks youi need a minimum of 3 market makers to be liste and market makers have to put a bid and offer. very few people have $25,000 to daytrade most retail don't daytrade even if they have more than 50,000 in their account. Most retail accounts at brokerages is for portfolio or retirement accounts, which is why the broker/dealer retail didn't complain, it was the market makers who were complaining about rise of daytrading among retail acconts from low commissions which directly compete with their business.
The rule was to keep out as many people from competing with market makers in stocks. in futures and forex there are not market making rules. In stocks youi need a minimum of 3 market makers to be liste and market makers have to put a bid and offer. very few people have $25,000 to daytrade most retail don't daytrade even if they have more than 50,000 in their account. Most retail accounts at brokerages is for portfolio or retirement accounts, which is why the broker/dealer retail didn't complain, it was the market makers who were complaining about rise of daytrading among retail acconts from low commissions which directly compete with their business.
Sign the petition to get this obsolete rule repealed. (this rule is 22 years old)
Change.org https://chng.it/252SvgtJBZ
Change.org https://chng.it/252SvgtJBZ
come trade futes instead. no pattern day trading rule, no stupid wash sale rule, 40/60 tax if you are profitable at the end of the year.
only con is..it is not for beginner and you can blow up if you have a small account
only con is..it is not for beginner and you can blow up if you have a small account
People shouldn't be allowed to trade at all without having sat in front of the charts at least 1000 hours (or statistics or whatever floats a boat but the amount of work should be no less). Usually when you sign up for a broker account you have to lie in order to get markets access (have been dealinf with stocks at least x years for example) this is where the fuckup already starts. If they rook the rule seriously no unprofessionals would be allowed to trade at all.