Call CNBC about New Daytrading rules!

Discussion in 'Retail Brokers' started by El Cazador, Aug 23, 2001.

  1. Htrader

    Htrader Guest

    I had the chance to meet Ron Insana last year, and he seemed like a really nice guy rather knowledgeable about the markets. But I agree that alot of these other guys are very immature.

    I prefer bloomberg TV to cnbc, but bloomberg repeats some of the same stuff all day. I wish there was a cable network that combined the professionalism of bloomberg with the up-to-date reporting of Cnbc.
    #11     Aug 23, 2001
  2. Babak


    oh boy! just when you think CNBC can't get any stranger, they bring a rock band in to jam during the dead zone!
    #12     Aug 24, 2001
  3. tntneo

    tntneo Moderator

    They have a few knowledgeable guests sometimes but the advertisers probably don't like people being bearish..
    John Doe does not want to hear when his investment is going down, so no ratings [well, less ratings].
    They mentioned it several time on the air, business is tough when the market is down for a long period of time.

    Therefore when last week this guy from lehman bro speak the truth and point out a downward risk of 20% [before last week acceleration down] they kept him just a few minutes on the air and switched to a bullish idiot.

    it is sad for regular people doing long term for their retirement listening to these idiots.

    I only have CNBC on [no sound] in case of a big event I need to know about : market halt [happened twice this summer. which is unusual] or for technical problems. Sometimes it's funny too when they don't take themselves seriously.
    #13     Aug 24, 2001
  4. Not only is it sad it's downright wrong. They hype the market whenever they can, especially the girls. These journalists have no thorough understanding of what really moves the market short term (i.e. psychology) yet they claim they are there to help people make money in the market! There is that silly chick elevated to the the rank of TV star who comes up with plays of the week! she is the worst of all. They make their living on hype. Despite their pretence of objective reporting they are in effect in bed with the big brokerage houses. They always interview market makers or specialists who are always bullish, I used to wonder whether these traders were either very mediocre market analysts or very talented and unscrupulous liars.

    I learned quite a bit watching CNBC when I started getting interested in the stockmarket a few years ago, but now I can't stand them anymore.
    #14     Aug 24, 2001
  5. Daytrading crackdown! (lol)

    Yeah right and we are all mental patients
    #15     Aug 24, 2001
  6. janko


    well folks here it is, cnbc finnaly doing osmething about this rule, its on right now. but its all bunch ov crap, protect invesotr my ass! sorry but i'm just pissed off.
    #16     Aug 24, 2001
  7. tntneo

    tntneo Moderator

    what did you expect ?
    CNBC defending traders ? Of course not.

    Let's look at it the way it is. The only advantage is this : these cheerleaders will help us milk retail investors when finally we have another bear market rally.
    Silly as it seems I think investors will buy into another technology rally. more volatility = more cash for us.
    This is forecasting, I know, but that's my analysis. people still believe in big growth in the Nasdaq.

    thank you CNBC for helping with the recent bubble. thank you for the next bull-shit rally.

    #17     Aug 25, 2001
  8. tradex21


    The next few weeks will see the end of many trading "careers" as these new rules are implemented. We had no one to lobby for small traders and tens of thousands of you will find your accounts closed in some AM for "violations". CNBC is eaten up with a case of the "Dumbass" and I seriously doubt they know much about it. Also most paid subscriber trading sites have kept it on the quiet as not to queer their September renewals. You will see the attrition in volume (about10-15%)and probably the end of the intraday momentum move. This was a concerted inside job to kill direct access trading as much as could be, and I think you will see it succeeding.
    #18     Aug 25, 2001
  9. I agree tradex....I think this is going to have a much greater impact then most would like to admit, although NOBODY can be certain exactly what kind of long term ramifications this new ruling will cause....

    #19     Aug 26, 2001
  10. Ok guys, let's clear up a few misconceptions about the new rules.

    Please view:

    You will see there that the rules ONLY apply to margin accounts. Here are some quotes from the regulations which I am sure you have seen before:
    (f)(8)(B) Day[-]Trading
    (i) The term "day[-]trading" means the purchasing and selling or the selling and purchasing of the same security on the same day in a MARGIN account except for:
    a. a long security position held overnight and sold the next day prior to any new purchase of the same security, or
    b. a short security position held overnight and purchased the next day prior to any new sale of the same security.

    (ii) [A "day-trader" is any customer whose trading shows a pattern of day-trading.]

    So the rules ONLY affect you if you trade within a margin account. Only then do you need to top your account up to $25k.

    If you have less than $25k, simply trade in a cash account. As long as your broker has real-time buying power calculated for your cash account, you can continue to trade at will on the long side (the short side is out, cos that requires a margin account).

    If you have $15k, then open up a CASH account with a real-time buying power broker such as Cybertrader. You can then do long side trades all day long, so long as you close one trade before opening another and so long as you don't use more than $15k on any one trade.

    The SEC is only out to kill MARGIN trading on accounts that it arbitrarily identifies as dangerously undercapitalised (it somehow came up with $25k). The SEC has NOT killed long-side CASH basis daytrading for those sub-$25k accounts (indeed daytrading is usually defined as trading in a MARGIN account, so "CASH basis daytrading" is somewhat of a contradictory term) . Just go out there and find a broker who updates your account buying power in real-time. I don't believe IB does this (but they may be forced to change their mind unless they want their commission revenues to be slashed). CyberTrader DOES have the facility.... and I am sure there are others, too.

    #20     Aug 26, 2001