thank god for the Pattern Daytrade Rule

i hear ya traderpro. i now trade prop and would never give a prop firm 25k. i get leverage with a much smaller amount but i risk my capital if they go under. all brokerage forms should give 4-1 regardless of a customers account. perhaps a 1,000 minimum? 25k is too much for a beginner as he will lose it all quickly. at least if you are given some leverage witha few grand,you can learn the ropes and by the time you go through 25k,you will have learned to trade. starting with 25k from jump street is a sure fire way of losing your capital quickly and not learning a thing. we all made our bones with loses so i'm speaking from experience as you seem to be as well.
 
Maybe the gist of the rule isn't about "experience" or age, but that daytrading is reckless behavior. The SEC defines a "sophisticated investor" as having $1mil in liquid assets, so the day trading rule is pretty lax in comparison. The government is lobbied heavily to give more business to money managers, and they want the little guy to funnel his savings into 401ks and mutual funds. So the rules will probably tighten going foward, especially with democrats in power imo.
 
Quote from atticus:

It's not mandatory that you post every synaptic impulse that travels from your pair of neurons.
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The score is:

He.....................210


You .............................1965


The adage "pot calling the kettle black" is time-tested.
 
Quote from enforcer99:

it saved so many investors from losing money. a great example is a guy who is actually a good trader but only has 10 grand due to the fact that he is young and just starting to save money after graduationg college. even though he has been trading for 5 years the pattern day trade rule prohibits him from daytrading without at least 25k. thank god! i mean the guy has experience so he is sprobably likely to lose money unless he has 25k. 25k means you are automatically deemed a good trader by the sec no matter what your experience level is. it really helps out traders. in fact,an 18 year old kid just out of high school can take all his graduation money and savings and start daytrading with no experience because the sec thinks he has more experience. its a great rule.
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how can you be a good trader, with good experience, but no money, is beyond me.




obviously your definition of "good" is simply not good enough to accumulate $25k quickly.
 
Is this your money or the governments to trade? This is clearly unconstitutional and needs to be challenged in court. I have a right to buy and sell shares as often as I want, regardless if i'm poor or rich.

Following the same pattern, the govt shouldn't allow people to go to casino
s more than X times a year if they do not have a net worth of X. Oooops, the casino lobby would never allow that to happen. :p
 
And you find this terribly upsetting?



HeLLLLLooooooooo Wackooooooo!

Quote from enforcer99:

it saved so many investors from losing money. a great example is a guy who is actually a good trader but only has 10 grand due to the fact that he is young and just starting to save money after graduationg college. even though he has been trading for 5 years the pattern day trade rule prohibits him from daytrading without at least 25k. thank god! i mean the guy has experience so he is sprobably likely to lose money unless he has 25k. 25k means you are automatically deemed a good trader by the sec no matter what your experience level is. it really helps out traders. in fact,an 18 year old kid just out of high school can take all his graduation money and savings and start daytrading with no experience because the sec thinks he has more experience. its a great rule.
More...
 
Quote from enforcer99:

it saved so many investors from losing money. a great example is a guy who is actually a good trader but only has 10 grand due to the fact that he is young and just starting to save money after graduationg college. even though he has been trading for 5 years the pattern day trade rule prohibits him from daytrading without at least 25k. thank god! i mean the guy has experience so he is sprobably likely to lose money unless he has 25k. 25k means you are automatically deemed a good trader by the sec no matter what your experience level is. it really helps out traders. in fact,an 18 year old kid just out of high school can take all his graduation money and savings and start daytrading with no experience because the sec thinks he has more experience. its a great rule.
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this is a great post

It has so many fallacies and illogical thoughts crammed into one paragraph, I don't think I could duplicate even if I tried....

BTW its bar mitzvah money

unless you are timmy, because I have seen many people on elitetrader refer to timmys money as bat mitzvah money
 
Quote from enforcer99:

sec responded to shottings at daytrade firms in the 90's. [/B]
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agree, it was a stupid reaction rule.

I remember before the rule, I had my little 5K datek account and was flipping stocks all day. I sucked at it but was learning a lot.

Had I been required to deposit 25K and had the money to do that it would have been disastrous..
 
Quote from traderdragon2:

Following the same pattern, the govt shouldn't allow people to go to casino
s more than X times a year if they do not have a net worth of X. Oooops, the casino lobby would never allow that to happen. :p [/B]
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Very good point. Sorry, we can't let you through the doors unless you can swipe your cash card and verify you have 25,000 to gamble. Sorry, it's the law to protect the under capitalized.

Sorry, you can't buy those lottery tickets unless you have a 10,000 cash card, we just want to make sure people don't lose money gambling, since they can't think for themselves.

PTD rule cleans up the noise for the professionals and cuts down litigation time/money IMO.
 
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