Hello, Iâm European, and I really love America, the country of (economic) freedoms. The problem is that this PDT rule seems more âEuropeanâ than American !! You know these kind of bureaucratic rule that seems to exist only to make things more complicate and kill freedoms. I started day trading in the US (moved my own money in a USA direct trading firm) a little before this cursed rule was set in place. I had under 25k and had to STOP day trading which I decided to make my job for life. I remember well, and now its interesting to speak about it, that at this time, people were saying that this rule was good, because it would temper competition. People used to praise the old days when there were less day traders. It seemed as if the present was a nightmare because of so much day traders and competition. I also heard that this rule was set to protect people from themselves: because lots of people were suing their brokers after they lost their money. Well, now I must say that these reasons were pure propaganda bullshit. First, I talked (now days) to many day traders, and they all confirmed that because many day traders are gone because of this rule, it is NOW much more difficult to day trade. Less day traders means less liquidity means less movements. For example, a breakout used to last much longer when there were more day traders than now. A decent day trader had more time to jump in and profit. So the argument that the number of day traders was making it harder was a LIE. Day traders profit much more in a boiling free environment with as much day traders possible. Second, I donât believe that the 25k rule will protect new comers. Most day traders start and lose all what they have. The difference now is that many lose 25k instead of 5k when they first start. (the mad that invested more than 25k to start were loosing and are still losing). The truth is simple: this rule was put in place only to protect market makers and big, old and bald guys. These guys couldnât support to see so many day traders eating their cake and making it harder for them. The only ones who wanted this rule are the market makers and the old big players. This rule is UNAMERICAN because it removes chances for the average guy to come in the market without an obligation of investing a whole year of its salary. It is UNAMERICAN because it lags the market and want to restrict competition. We all know that this rule will be removed one day. We all know the market makers will have less and less privileges and that the market will become more and more an international free environement tradable 24/7 even for stocks. Its just a question of time and of people voicing their disgust. What about creating a petition online ? http://www.petitiononline.com/ Cordially, Koros
Actually the PDT rule is very American. At least representative of the New America. That's the place where the rights and choices of the individual are impugned by bureaucracy and monopolies. I don't even think the PDT was enacted with legislative approval. Even if it was passed by Congress, the insane electorate has seen to it that we only live in a pseudo-democracy anyway.
Absolutely agree. The problem is New America, PDT is only little rock in whole ocean. Same thing is recent blackout, but this rock is bigger. For the last ten years US has changed dramatically, this is not the same country as years ago. More to come.
Petition online a good idea. Keep this thread going. All traders do petition now. Subject: PDT (pattern day trading) rule is UNAMERICAN.
>>>Actually the PDT rule is very American. At least representative of the New America. That's the place where the rights and choices of the individual are impugned by bureaucracy and monopolies. I don't even think the PDT was enacted with legislative approval. Even if it was passed by Congress, the insane electorate has seen to it that we only live in a pseudo-democracy anyway. >>> this is what bear market are about, like in the 60's-70's something is wrong and people feel it this is what bear economies are all about : comon votes that says "it can't conitue further, it either changes or we stop producing/consuming" this is why all attempt to prop jump things w/o curring the deasis at the root (low rates, low currency) is anti democratic : it's like puting unhappy people on prozac
Seems this thread has turned from PDT issues to how "America is changing" issues..if anyone hasn't read Liddy's latest book "When I was a Kid, This Was a Free Country", I think you will enjoy the insight into the progression of liberties slowly eroding..not that I'm a fanatic about the issue, but it was eye-opening..doesn't take too long to get through either. My favorite part was a guy owned a piece of land. On this land was a huge tree that was a serious threat to his house and family should it fall. But since it was on a swampy part of his land, the EPA deemed it some kind of wetland, which is protected, therefore, he couldn't cut the tree down to rid his house/family of the danger. There are many more great little quips like throughout the book. Anyway..if you are interested... Regards, Chris