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Thread: Pattern Day Trade Rule needs repealed

  1. #1

    Pattern Day Trade Rule needs repealed

    The rule was put into place in 2001 by the SEC and it says that you cannot do day trading with 4 trades or more per day. So it is really holding back the average Joe. Of course day trading is more profitable than investing because you are able to keep buying more shares and expanding on the profits. Plus you minimize the loss because you can sell immediately when the stock goes down. The above cannot be done with investing. So investing is a poor way to make profits and this rule needs to be repealed as it is forcing ordinary people to invest instead of day trade and make real money.



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  3. #2
    ha. That is only the tip of the regulatory shackles that were placed on US day trading.
    It's all corrupt
    and 'gamed'
    and regulated.
    Sick of the whole mess.
    I Don't/Won't trade anymore as a US citizen.

  4. #3
    Quote Originally Posted by goldenequity View Post
    ha. That is only the tip of the regulatory shackles that were placed on US day trading.
    It's all corrupt
    and 'gamed'
    and regulated.
    Sick of the whole mess.
    I Don't/Won't trade anymore as a US citizen.
    Well let's hope it gets repealed with Donald Trump executive order where any regulation that holds back the economy gets repealed.

  5. #4
    The more often you trade the higher your costs which reduces your profits as well. Day trading is a tough way to try to make a living. Day trades are also subject to "short term capital gains taxes" which are higher than long term capital gains tax rates (long term means waiting at least a year before selling an asset).

    http://www.businessinsider.com/henry...ont-get-2010-3

    Here's What Day Traders Don't Understand


    As we explained earlier, day-trading is one of the dumbest jobs there is: According to one academic study, 4 out of 5 people who do it lose money and only 1 in 100 do it well enough to be described as "predictably profitable."

    Most of the folks who do it, in other words, would be far better off working at Burger King.

    As is often the case when we bring up these facts, some readers screamed. One said that our brain-damage was made patently obvious by the fact that Wall Street professionals day-trade all day. If day-trading were so dumb, then why would professionals do it?

    Here's what that particular reader is missing:

    Most Wall Street traders get paid to day-trade other people's money.*

    That's a huge difference compared to what most stay-at-home day-traders do.

    The average professional trader gets paid somewhere between 1% and 3% of assets per year just to trade those assets all day. The average hedge-fund trader gets paid another 20% on top of that for any "gains" he or she makes (regardless of whether the gains are the result of the trader's trading or the bull market).

    The average stay-at-home day-trader, meanwhile, trades his or her own money. And while many of these traders do fine on a gross basis (before costs), once the costs of this trading are deducted (commissions, taxes, research and information, time), their performance is usually downright awful.

    The reason so many professionals day-trade, in other words, is that getting paid to day-trade other people's money is one of the best businesses in the world.

    Day-trading your OWN money, meanwhile, is one of the worst.

  6. #5
    Quote Originally Posted by Zippyjuan View Post
    The more often you trade the higher your costs which reduces your profits as well. Day trading is a tough way to try to make a living. Day trades are also subject to "short term capital gains taxes" which are higher than long term capital gains tax rates (long term means waiting at least a year before selling an asset).

    http://www.businessinsider.com/henry...ont-get-2010-3
    For God's sakes - why are you even on these forums? Your post has nothing to do with the original post. We are Libertarians - stop preaching at people already. They do not need you to take care of them.

    The Pattern Day Trader applies only to traders trading on margin. It shouldn't be a law, but I wouldn't care if the brokerages made rules about that.

  7. #6
    Quote Originally Posted by angelatc View Post
    For God's sakes - why are you even on these forums? Your post has nothing to do with the original post. We are Libertarians - stop preaching at people already. They do not need you to take care of them.

    The Pattern Day Trader applies only to traders trading on margin. It shouldn't be a law, but I wouldn't care if the brokerages made rules about that.
    Sorry. The topic was not about Day Trading. My bad.

  8. #7
    Quote Originally Posted by Zippyjuan View Post
    Sorry. The topic was not about Day Trading. My bad.
    The topic was a specific rule applying to day traders using margin accounts. You flew in clutching your pearls over day trading in general. Which doesn't answer my question.

    We are a libertarian forum. You've pretty much abandoned the pretext of being libertarian. So why are you here, exactly?

  9. #8
    I was on a stock simulator which took commissions into account as well as the actual real life stock exchanges such as Dow and Nasdaq. It's called the Stock Wars App. I was in the 95th percentile. My strategy was buying large number of shares in a single stock that were trending at that very second. I would hold on to it till it went up a single percent or more. I would immediately sell. After a month, I made a profit of 30 percent. What I did was the exact opposite of mutual funds.
    Last edited by dude58677; 03-01-2017 at 08:38 PM.



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  11. #9
    Quote Originally Posted by dude58677 View Post
    I was on a stock simulator which took commissions into account as well as the actual real life stock exchanges such as Dow and Nasdaq. It's called the Stock Wars App. I was in the 95th percentile. My strategy was buying large number of shares in stocks that were trending at that very second. I would hold on to it till it went up a single percent or more. I would immediately sell. After a month, I made a profit of 30 percent. What I did was the exact opposite of mutual funds.
    I had a gf 5 years ago who made a pretty good living lying on he bed w/ her laptop, watching TV in her bathrobe, and short selling. IIRCC, +/- $400/day.
    All modern revolutions have ended in a reinforcement of the power of the State.
    -Albert Camus

  12. #10
    Quote Originally Posted by otherone View Post
    I had a gf 5 years ago who made a pretty good living lying on he bed w/ her laptop, watching TV in her bathrobe, and short selling. IIRCC, +/- $400/day.
    I made a mistake in my thread. It was large number of shares in a single stock.

  13. #11
    Quote Originally Posted by otherone View Post
    I had a gf 5 years ago who made a pretty good living lying on he bed w/ her laptop, watching TV in her bathrobe, and short selling. IIRCC, +/- $400/day.
    I had a friend make a similar amount on one of those Texas hold 'em sites. Quit his real job and did it full time. I figure those/these people just have a more finely tuned intuition.

    Anyhow, don't trade on margin? Cash advance on a credit card for 'margin' dollars. Or a personal loan from a bank?

  14. #12
    Quote Originally Posted by angelatc View Post
    The topic was a specific rule applying to day traders using margin accounts. You flew in clutching your pearls over day trading in general. Which doesn't answer my question.

    We are a libertarian forum. You've pretty much abandoned the pretext of being libertarian. So why are you here, exactly?
    @Zippyjuan?



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