You guys need to organise a national body to start fighting back. The below i would have considered as "nonsense" a few months back and today its my brokers new "policy" 21. Are Cash Accounts affected by these rules? Yes, Cash Accounts are affected. If you meet the definition of a Pattern Day Trader in your Cash Account, you will be subject to the $25,000 minimum equity requirement.
qwiktrade: makes sense to me... you know, i have never heard what the 'official' reason was for the new PDT rules, but have assumed it was heat created by media hyping of stories about innocent mothers ( i saw a story like this on tv) buying on the advice of ANALYSTS pre-bubble-burst... so i think we should ban analyst comments (positive and negative) while we're at it ...this is where the damage actually came from anyway IMO, day traders are just taking the blame
Really, this is getting out of control. Not only was I slightly <25k but I was better at shorting. What's next? Isn't there an association of traders, a guild or something that can lobby? Can one be formed? If we treat daytrading as anyother business then why can't we have a voice to educate the public?
"To the extent that short sellers have played a significant role in creating the current market conditions, I request that you consider the appropriateness of certain measures, including inhibiting short selling," LaFalce said in a letter to Securities and Exchange Commission head Harvey Pitt. Shortselling (due to the uptick rule and the fact that it creates future DEMAND) actually cushions a stocks fall, if indeed it does fall. Further it actually creates a more liquid market in the short term. "Short selling is a common but risky way of exploiting a fall in share price by selling borrowed shares, buying them back later at a cheaper price, and keeping the difference as profit." Why in the world does every journalist insist on describing short selling as 'risky'. Yet they never tack on that buying a stock is risky when they quote an analyst with a buy recommendation? Unfortunately we have officials as well as financial journalists who are absolutely and wholly ignorant. What's next? only allowing long positions without liquidation? Because "as we all know any selling causes prices to fall". Reminds me of a guy who in the Congressional hearings after the crash of 1929 suggested that telephones be banned from use in the stock market because they cause prices to be communicated much too fast for people. It seems that every time something dramatic happens, the ignorant search for a simple scapegoat on which to blame everything.
you laugh Yoda? http://www.sec.gov/rules/sro/nd0003n.htm NASD Regulation believes that the proposed rule change is consistent with the provisions of Section 15A(b)(6) of the Act,5 which requires, among other things, that the NASD's rules must be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. NASD Regulation believes that the proposed rule change will more appropriately address the deficiencies in the existing day trading margin rules, promote the safety and soundness of member firms, and further investor protection. i don't believe the new policys which include having to have 25k in a cash account are "just" and maybe a paragraph to remember if they want to take the shorting talk further
You're right Tuna, there is nothing to laugh about indeed, sorry. Thanks for explaining, I really couldn't understand how they justified it. Bob
The problem with these politicians is that they often own stock, or even actively trade. They probably arent very good at it, and dont put too much thought and work into it. I'm sure they go through the same emotional roller-coaster that many "gambler" traders go through. We've all read about the psychology of traders trying to FORCE their opinions on the market. Wanting CONTROL over the situation. But, we realize that we need to learn to go with the flow and not fight it. Now just imagine that trader Joe had a way to control the market. Its only natural to assume that he would try and use that power. He could pass a law that he thinks would make things more FAIR. After all, he lost money, that cant be FAIR!! I think that members of congress should NOT BE ALLOWED to trade or own stock. Much like I assume the guys at the Fed are not allowed. This at the very least would make them a bit more objective.
Oh yeaaah! You are so smart and intelligent, politicians! Bin laden made a profit on shorting some stocks, so we won't permitt short selling!!! There's a bear market in US, who is responsible? - short sellers, of course! Haaa! But maybe bin laden made also some huge profits on futures! Oh no.... what we should do? Close all futures markets!!! This stupid proposal, SEC 25k rule and uptick rule: shame for a human mind. These rules are a pure nonsense! There are so many fool people in the world. Their way of thinking is completly irrational and illogical. Politicians, rule-makers, CEOs directors and all others: please use your brain!!! And read this: http://www.cluetrain.com DT-waw
I just made a post to another thread regarding this subject. I would repeat it here but what's the use. Let me just say that the third rate political hack who proposed this rule is being every bit an opportunist as the terrorist, banker(s), and other money guys who profited from "insider information" re the 9/11/01 tragedy. He's no hero...just someone who kissed enough Democratic party big wig ass to get the money to get elected. And Washington is full of them. And these are the people we're relying on to win "America's new war." Not a happy camper, but as always, Best regards, Jim