Nah, he's good to go. If people begin ignoring him, he will just create another alias (not speaking from personal experience).
PDT rules have destroyed me.
- Thread starter qdz
- Start date
Nah, he's good to go. If people begin ignoring him, he will just create another alias (not speaking from personal experience).
You spend your time telling people what they should or shouldn't say on here. Have you actually done any trading yourself yet?
No, qdz is sincere. He is not the sort to go creating aliases. He speaks his mind honestly and without guise.
As for me, I would welcome the hecklers to add me to their Ignore list. I wouldn't have to see all these vindictive and adolescent responses to every statement I make.
As for me, I would welcome the hecklers to add me to their Ignore list. I wouldn't have to see all these vindictive and adolescent responses to every statement I make.
When the student is ready, the teacher will appear. Shame is: most students never reach ready.
I am curious, did anyone find out WHY the PDT rule was put into effect? Rules are rarely made without reasons behind them?
Was it to discourage daytraders?
Was it try and stop wild daily fluctuations?
Did the government want to try to put more money in the market?
Instead of complaining, I have adapted to it.
I know when I am pissin' into the wind
Was it to discourage daytraders?
Was it try and stop wild daily fluctuations?
Did the government want to try to put more money in the market?
Instead of complaining, I have adapted to it.
I know when I am pissin' into the wind
This explanation was posted on www.groups.yahoo.com/group/DaytradersUnite/
Basically the daytrading rules came out of the Atlanta massacre when
the "crazed daytrader" who had lost his money shot up two daytrader
shops. A senate committee held hearings and so crying wives of men
who had lost the family "nest egg" daytrading "testified" mainly by
sobbing in front of the committee. Congress didn't pass a law but
the NYSE and the NASD proposed the PDT rules we all know and hate
in response to the aforementioned. If you read the letters of
comment it is clear that they all knew the rules were flawed but
they passed them as proposed.
It is interesting that while the rationale was reduction of economic
risk to the system they in fact turned most active traders loose with
twice the buying power they had before. (Most daytraders have more
than $25K) The remaining restrictions have no clear impact of
system risk. Why the magic number of four trades in a week? Why
the misinterpretation of free riding? (It used to apply only to
trading without depositing any cash, i.e. you make profit in the
three days to settlement and sell taking profit but the check never
shows up. That is free riding!)
Interestingly it seemed to favor the interests of the daytrading
firms themselves (by giving their clients 4 to 1 margin) and the large
institutions by keeping some of the small guys out of the way. The
losers in this were the online brokerages which had most of the
under $25K clients who trader somewhat actively compared to
traditional full service firms.
Basically the daytrading rules came out of the Atlanta massacre when
the "crazed daytrader" who had lost his money shot up two daytrader
shops. A senate committee held hearings and so crying wives of men
who had lost the family "nest egg" daytrading "testified" mainly by
sobbing in front of the committee. Congress didn't pass a law but
the NYSE and the NASD proposed the PDT rules we all know and hate
in response to the aforementioned. If you read the letters of
comment it is clear that they all knew the rules were flawed but
they passed them as proposed.
It is interesting that while the rationale was reduction of economic
risk to the system they in fact turned most active traders loose with
twice the buying power they had before. (Most daytraders have more
than $25K) The remaining restrictions have no clear impact of
system risk. Why the magic number of four trades in a week? Why
the misinterpretation of free riding? (It used to apply only to
trading without depositing any cash, i.e. you make profit in the
three days to settlement and sell taking profit but the check never
shows up. That is free riding!)
Interestingly it seemed to favor the interests of the daytrading
firms themselves (by giving their clients 4 to 1 margin) and the large
institutions by keeping some of the small guys out of the way. The
losers in this were the online brokerages which had most of the
under $25K clients who trader somewhat actively compared to
traditional full service firms.
It sounds like the NYSE and NASD used the situation to get these rules pushed through. I don't think they proposed the rules in their current form just to appease the wives of some unfortunate daytraders.
They are getting something out of this. Maybe it was just to save their asses, and put a rule in before congress steps in to look at things more closely. But there could be more to it. Who might benefit from these rules?
They are getting something out of this. Maybe it was just to save their asses, and put a rule in before congress steps in to look at things more closely. But there could be more to it. Who might benefit from these rules?
I'm by no means a supporter of the PDT rules, but the SEC did offer a response period for public input when the rules were being considered, and from what I remember, the response and opposition to the rules was very minimal.
Did any of you who are crying and moaning about it now do anything to oppose it back then?
Did any of you who are crying and moaning about it now do anything to oppose it back then?
A. I didn't know about it at the time
B. When presented for public comment, they made no mention of including stock options in the rule
B. When presented for public comment, they made no mention of including stock options in the rule
I knew they were considering it....but I had no idea that my opinion had any weight. And 2 years ago my account was bigger, now I am more close to the bone.....
Did you know that during the Depression years, shorting stocks was illegal? I think it became legal again sometime in the 70s.....does anyone know?
So that should give you hope with some pressure that THEY might change the rules.
Myself, I just changed to futures to circumvent it.
Did you know that during the Depression years, shorting stocks was illegal? I think it became legal again sometime in the 70s.....does anyone know?
So that should give you hope with some pressure that THEY might change the rules.
Myself, I just changed to futures to circumvent it.