Remove the Pattern Day Trading Rulle - Vote
- Thread starter Joab
- Start date
most people trading start with big dreams and little money and some who would have enough (more than 25k) are maybe not willed to put it on the table as long they cannot prove to themselves being ripe and profitable. Now those with less than 25k might put much more time and effort into the whole thing than somebody who switches from the screen to the golf court. The little trader might find something whats nicely working for a certain time period and cannot milk it because of this rule. Going around the rule by trading futures is the road to a dead end for most. The rule is a pure restriction to making ones own free decision about his/her money - period.
Agreed 25K is not a great account sum...
But - The rule itself is not aligned with the principles of our free enterprise system....
We need none of those rules and the removal of this one would be a justified by its anti-competitive nature...
<img src="http://www.enflow.com/p.gif">
The PDT rule has given traders the ability to trade 4-1 vs 2-1 margin. Traders have the ability to park half their cash in interest bearing accounts while trading the same dollar amounts in their trading accounts since its implementation.
I vote for the PDT rule.
I vote for the PDT rule.
Most daytraders quit their daytime jobs to lose money, doing so they give a bad reputation to the stock market.
I agree that in a completely free society, the rule would have to be abolished.
On the other side all our society is based on the stock market, and investor confidence is golden.
I agree that in a completely free society, the rule would have to be abolished.
On the other side all our society is based on the stock market, and investor confidence is golden.
Its a good rule.
But the limit hasnt kept up with inflation.
Should be 35K now.
But the limit hasnt kept up with inflation.
Should be 35K now.
I agree the 4-1 is better a than the 2-1... and the cash / interest / trading account advantages...
But i don't follow that our government should be allowed to push an anti-free enterprise rule...
It should be the brokerage houses account sizes that are the proper way to set minimum accounts... for trading...
i can't imagine you'd get more people to support the repeal of the PDT now than had sent emails, letters, phone calls, etc. to the SEC a few years ago.
it's still too soon, and the main reason for its implementation (fear of customers suing brokerage houses, their brokers, exchanges, etc.) is still around.
do i think it should be gone? of course (keep the 4:1 margin >25k, that's fine). but will it be? doubtful. it was never about the individual investor, but about the lawsuits.
it's still too soon, and the main reason for its implementation (fear of customers suing brokerage houses, their brokers, exchanges, etc.) is still around.
do i think it should be gone? of course (keep the 4:1 margin >25k, that's fine). but will it be? doubtful. it was never about the individual investor, but about the lawsuits.