I think we need to start a petition (list of names) to submit to the powers that be that we want the Pattern Day Trading Rule - REMOVED. This is a stupid rule that was enacted after the 2000 crash and is not relevant in todays market. As a Canadian I have no rights in the US but I think we should all band together and form some sort of consortium or lobby group or list of names or something to get this STUPID law removed. As professional traders we MUST stick together. What next?
The rule is meant to keep tiny accounts from churning their $5k into 0 in no time. Futures do not have the PDT, easy way around that rule.
The PDT is an anti American rule - anti free enterprise rule... People have the right to destroy their wealth if they choose unwisely and should have the option to increase their wealth if they choose wisely... <img src="http://www.enflow.com/p.gif">
I agree EH but the problem is that also part of the American mentality is - I screwed up so I better sue someone else for my actions. That's also a part of the American spirit.
Prob is, when idiots lose their wealth - ie: buying homes they can't afford - then the government bails them out with our money and raises taxes. So I am all for not letting idiots lose more money so we do't have to keep bailing people out. The American way should prevail and if people lose, they lose, and don't get to dip into the tax coffers to get their money back, then maybe we can talk about letting idiots trade bigger.
Well said... people should be allowed to fail... it is a great learning experience to fail legitimately... it can help you create wealth later as you replace your lack of experience with wisdom...
How about some more rules and regs, like no one is allowed to start a home based business with less than 25k capital. In other words, Granny cannot knit mittens and sell them to people she knows, cause she doesn't have 25k to start her business. Gotta protect Granny from hurting herself. Who will protect us from the government?
The PDT rule does a lot more harm than it does good. The rule is there to "protect" you from losing your money, but instead for a lot of people including myself once upon a time the rule CAUSED me to do the very thing it was meant to stop. Since you can not day trade stocks with less than 25k in assets, a lot of people move to futures. So instead of being able to day trade MUCH smaller size in a more controlled manor. People with less than 25k are forced to move to a MUCH riskier asset class "futures" instead to avoid this rule. In futures you are FORCED to assume huge amounts of leverage to day trade. Often times this immense leverage for an underfunded account causes you to rack up losses by playing with "scared" money. Where if you simply could have day traded stocks in a much more controlled manor using a fraction of the leverage you could have performed better. Luckily for me I am no longer below the PDT requirements so I can day trade stocks. But for a lot of people who are still below this PDT rule their performance is suffering from being forced into this much riskier asset class. Especially those just trying to learn. No better way to learn how to day trade than being able to trade small amount of shares of a stock where the worse that may happen is you lose 20 or 30 bucks. But being forced into futures even trading just 1 contract you may lose 500 to 1k in the blink of an eye.