i hear ya traderpro. i now trade prop and would never give a prop firm 25k. i get leverage with a much smaller amount but i risk my capital if they go under. all brokerage forms should give 4-1 regardless of a customers account. perhaps a 1,000 minimum? 25k is too much for a beginner as he will lose it all quickly. at least if you are given some leverage witha few grand,you can learn the ropes and by the time you go through 25k,you will have learned to trade. starting with 25k from jump street is a sure fire way of losing your capital quickly and not learning a thing. we all made our bones with loses so i'm speaking from experience as you seem to be as well.
Maybe the gist of the rule isn't about "experience" or age, but that daytrading is reckless behavior. The SEC defines a "sophisticated investor" as having $1mil in liquid assets, so the day trading rule is pretty lax in comparison. The government is lobbied heavily to give more business to money managers, and they want the little guy to funnel his savings into 401ks and mutual funds. So the rules will probably tighten going foward, especially with democrats in power imo.
The score is: He.....................210 You .............................1965 The adage "pot calling the kettle black" is time-tested.
how can you be a good trader, with good experience, but no money, is beyond me. obviously your definition of "good" is simply not good enough to accumulate $25k quickly.
Is this your money or the governments to trade? This is clearly unconstitutional and needs to be challenged in court. I have a right to buy and sell shares as often as I want, regardless if i'm poor or rich. Following the same pattern, the govt shouldn't allow people to go to casino s more than X times a year if they do not have a net worth of X. Oooops, the casino lobby would never allow that to happen.
this is a great post It has so many fallacies and illogical thoughts crammed into one paragraph, I don't think I could duplicate even if I tried.... BTW its bar mitzvah money unless you are timmy, because I have seen many people on elitetrader refer to timmys money as bat mitzvah money
agree, it was a stupid reaction rule. I remember before the rule, I had my little 5K datek account and was flipping stocks all day. I sucked at it but was learning a lot. Had I been required to deposit 25K and had the money to do that it would have been disastrous..
Very good point. Sorry, we can't let you through the doors unless you can swipe your cash card and verify you have 25,000 to gamble. Sorry, it's the law to protect the under capitalized. Sorry, you can't buy those lottery tickets unless you have a 10,000 cash card, we just want to make sure people don't lose money gambling, since they can't think for themselves. PTD rule cleans up the noise for the professionals and cuts down litigation time/money IMO.