New Daytrading rule in September 01'

Discussion in 'Trading' started by huby, Jun 19, 2001.

  1. truthfultrader:

    This will be my last post on this thread, as I will heed my own advice to not waste time thinking about this subject.

    First of all, you keep referring to this new margin rule as a law that somehow limits a person from selling his property. I've already explained in a previous post that it doesn't do that. I'll just repeat what I said earlier: Read the regulation for yourself. In any case, I'm not here to change your opinion.

    Regarding the remainder of your post making some sort of a legal argument, you really answered your own question at the beginning. You said "IF the right to sell one's property is considered a fundamental right . . . ." IF. That's the whole point.

    If you took a course covering constitutional law, you should have learned that the term "fundamental right" is a legal term of art referring to rights that are not written in the Constitution but which the Supreme Court has ruled are protected by substantive due process. These rights are personal in nature and relate to choices one makes about abortion, child rearing, marriage, family life, and bodily integrity. Selling one's property is not a fundamental right.

    Here's the big deal about the fundamental rights mumbo jumbo. Laws dealing with fundamental rights are given strict scrutiny (the government must show constitutionality) by the Supreme Court and are almost always struck down. Laws not dealing with fundamental rights are given a more lenient rational basis test (plaintiff must show unconstitutionality) and are almost always upheld. Who has the burden of showing what in this case? Go back to my earlier post. It doesn't take a constitutional lawyer to know the outcome of this case under substantive due process well in advance.

    Under equal protection the outcome would be no different. Equal protection just extends the strict scrutiny test to classifications based on race, ethnicity, alienage, gender, and illegitmacy. Again, selling property isn't covered in that list. Who has the burden of showing what? You guessed it, the plaintiff. The game is over before it's begun.

    Anyway, I was only half-joking when I said not to make a federal case out of this. It doesn't matter to me whether or not anyone heeds my advice to just concentrate on trading. The rule has been passed. Don't whine or gloat. Just trade and make money. Good luck to you. You have the last word.
     
    #111     Aug 6, 2001
  2. fast

    fast

    On another thread I posted a link to a new press release: Investors need warning on online trading risks - GAO

    http://www.elitetrader.com/vb/showthread.php?threadid=1875

    This press release indicates that the Federal government may not be through "protecting" daytraders. I see nothing in the press release that seems threatening to individual traders, but given that the SEC was willing to set rules restricting traders with less than $25,000, it might be willing to expand its restrictions.

    fast
     
    #112     Aug 8, 2001
  3. akhuto

    akhuto

    Another thing that I'm upset about besides the 25k is something else.
    I have an IB account which doesn't earn interest,right?! On top of that now I will have 25+k of idle money in there !!!!! .
    If you think about it with datek ,at the time I had an account with them ,I earned close to 4.5%,ok it's not much but still.
     
    #113     Aug 10, 2001
  4. def

    def Sponsor

    Money at IB earns interest over any amount over 10K.
     
    #114     Aug 11, 2001
  5. def

    def Sponsor

    Money at IB earns interest over any amount over 10K. The interest rate is pretty favorable.
     
    #115     Aug 11, 2001
  6. akhuto

    akhuto

    Really ?

    My account is over 10k didnt see any interest added,why?
    Where in the website can i find info on interest ?

    Thanks def !!!!!
     
    #116     Aug 11, 2001
  7. def

    def Sponsor

    Interest is posted once a month and should be automatic. If you did not receive interest, send a mail to the help desk and they can look into the issue.

    Check out this link which has the info:
    http://www.interactivebrokers.com/html/retailAccount/interest.html

    (the website has and is being redesigned. If the link is a dead link, just click under account info on the left tool bars).
     
    #117     Aug 11, 2001
  8. Sanjuro

    Sanjuro

    Interest over 10k...

    Does this mean if you have 11k in your account,
    you will only get interest on 1k?
    Or all 11k?
     
    #118     Aug 11, 2001
  9. fast

    fast

    #119     Aug 11, 2001
  10. fast,

    great link. Some very well thought out comments from Datek's CEO. It makes one wonder why in the world the SEC is going down this path when many other less intrusive options are available, such as those proposed by Datek.

    In any event, thanks for the good read....guess it really doesn't matter much now though....

    ==PA
     
    #120     Aug 11, 2001