Just had a conversation with an economist last weekend. Yes, I must be a masochist. I learnt about a theory called "noise trading" It basically says anyone trading off technical analysis or price patterns, specially day traders and retail traders, are harmful for the markets and prevent the markets from reaching "informational efficiency" whatever that is. This theory acknowledges that noise traders may make more money but they are still irrational (in other words idiots) because they make more money just by taking more risk. I am beginning to understand where the pattern day trading rule came from. Now these academics want a tax on securities transactions, in other words higher commisions... Check this PDF out. http://w4.stern.nyu.edu/finance/docs/pdfs/Seminars/051f-saar.pdf I am not qualified to make a long critique of this theory but it sounds like saying that anyone not trading according to their fundamental theories must be banned. These guys must grow up and accept that unfortunately markets don't work the way they think. Never did, never will. Hope there are politicians out there who have faith on liberty and free markets and oppose these proposals.