Blah, blah, blah. Trade your capital, build it up, END OF STORY. Why can't anyone work hard, perservere and seek a long term result? It's like you're saying that you are so damn special that you shouldn't have to work hard and wait like many before us have done. Grow up. With this type of attitude, it's no wonder the American consumer is so deep in debt and the subprime debacle is unfolding.
We live in an instant gratifaction society and it becomes more so every day. Newbie millionaire hedge fund traders and street guys are going to have a hard time the next downturn for Wall Street. There won't be second chances like Brian Hunter. Or is it different this time, just like housing, tech, tulips and Countries.
You can always max out your credit cards with cash advances to get the necessary funds? (And before you all jump down my throat, I'm being facetious)
With it as easy to make money as its been the past few years, I really can't imagine how anyone could still be poor. You could have thrown darts at the board in 2002 and be up 200% now on just about anything, let alone if you were actually trying.
I agree with Razor99. We should start a thread on this forum dedicated to forming a class action lawsuit against the SEC. They have no right to tell an individual how often they can trade their own money. If you have limited funds and you are a good daytrader making profits on every trade but you are limited to trading just 3 times a week you are going to miss out on alot of profitable trades weekly. So, in effect, the SEC is causing you to lose money. We should be able to sue them for limiting our earning potential. Sue them for all the potential money each individual is losing each week by not being able to trade freely. This ruling is unconstitutional limit our right to free trade and nobody is challenging it. Someone said: "The logic is that you do not have $25,000 in cash you have probably not been that successful in other endeavors in your life and will probably not be that successful daytrading" In response to this, no one has the right to presume that you will probably not be successful at daytrading just because you lack $25000. How can anyone presume to know for a fact how someone turn out NO ONE HAS THE RIGHT TO LIMIT SOMEONE'S POTENTIAL BECAUSE THEY PRESUME TO KNOW WHAT THEIR OUTCOME WILL BE AHEAD OF TIME.
MORE SPECIFICALLY, THIS RULING IS UNCONSTITUTIONAL AS IT VIOLATES OUR RIGHTS TO FREE TRADE WITH THE USE OF OUR OWN CAPITAL. Comments?
Doesn't pattern day trading only apply to margin accounts? If so this is not your capital, it is borrowed. I may be mistaken as I do not need margin but thought that was the rule. I am sure you will let me know otherwise if it is not.
You can trade with limited funds go to ameritrade. The rule is in place but there are loopholes around it(llc/prop). Reason for the 25k rule is 5k-10k can be lost in a stock halt, news and so on. If a trader is that good then to get a backer with zero money up shouldn't be that hard to find. Or take a loan to go on a credit card is crazy but people do this. I remember when i started they had a line for my net worth to fill out these days they will take whatever you have(500-5,000). Save your profits and build your account but that is why it is so tough. Traders live on what they make and it's not IF but WHEN the tough times come if you can make it through. Good luck but i wouldn't take that rule so personal.
First of all, the rule was created by the NASD, not the SEC. And it was a result of the numerous complaints they recieved from day traders who went bust during the 90's. Most of the people complaining to the NASD and SEC had accounts under $25K. The regulators were tired of listening to ex-IT types from Silicon Valley whine about how the market was manipulated causing them to lose money.
The minimum day trading rules are discriminative. I do understand the logic, but I think that they do disturb the liquidity of the market. Almost like the difference between the federal and state governments. As laws are often left in the state's authority, I believe that the SRO's, and the SEC should leave their account management in the hands of the Broker-Dealers. If a Broker-Dealer is willing to extend leverage to clients whether they be individuals or entities, they shall do so given that the broker-dealer has the financial resources and ample deposit.