As has been discussed many times here on ET, the current Pattern Day trading Rules are completely unfair to those without $25k in their accounts. I remember being a broker at an online trading firm prior to those rules being in effect. Customers could make a trade that they believed to be in their best interest and not be stuck in a position overnight, or miss an opportunity because they were afraid of violating the PDT rule. Even worse...often times unsuspecting traders at online firms are sometimes permanently penalized for unintentional violations. I have seen customers open margin accounts, not planning on being daytraders, but during vacation periods they decide to trade a little extra and do not see the warnings or understand them and end up having a violation. If they ACAT their accounts out, the violation follows them to their next broker (this is why closing their account and requesting a check...which they then deposit at the new broker is best). During a compliance meeting a few days ago we were told that the reason the SEC implemented this rule was because DTCC (Depository Trust Clearing Corporation) told them to. I was shocked. All these years I thought that the SEC implemented that ridiculous rule in order to "discourage and protect" the public from attempting to daytrade with small underfunded accounts. Now I hear that DTCC just did not want to front so much capital on so many small timers banging away endless trades. I am curious if anyone else has heard anything similar regarding the PDT rule and DTCC's role in pushing the SEC to create it??
isnt it ironic that 80% of the volume is now is goldman sachs scalping? they will lie cheat and steal and manipulate congress into helping them, the lies change but they just dont want small traders narrowing the spread, thereby allowing them to steal less.
Really? Then help us out and explain how decimalization, which tightened spreads considerably, ever came about? As for GS, if you're retail, you're an idiot to try running within a herd of elephants. Much safer to sit on top of one and let it take you where it wants to go...
I cant but maybe you can tell me why they want to outlaw smaller traders and scalpers.....I really can not think of any other reason why GS hates them so much. And i do try to go with the smart money and go with the flow....why fight them???? That does not necessarily mean i might noy want to exit a trade at the end of the day that I entered in the morning, presently I cannot.
Even worse: it drove those small traders to much dangerous markets: like Futures and Forex (for which those rules doesn't apply).