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IvyMike
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30 Nov 2010, 3:06 pm

The SEC limits you if you have under $25k in a brokerage account by only allowing you to daytrade 3 times. The rich are not limited by this and can make insane amounts of money daytrading. How is this not class warfare? Why is it that a foreigner who bypasses the SEC through an offshore brokerage has more economic freedom than the poor in the "land of the free"?



the_curmudge
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30 Nov 2010, 7:46 pm

As I don't daytrade, I wasn't aware of this rule. Is that 3 trades a day, a week, or what?

I guess the conventional wisdom would be that while you can make an "insane" amount of money this way, you can lose an insane amount too. That would be tougher for someone with a $25,000 brokeage account than someone with, say, a $500,000 brokerage account. But I can see that while the rule protects the little guy, it also makes it impossible for him to score a win. I'm not sure I would call it "warfare," though.



IvyMike
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30 Nov 2010, 10:51 pm

You can only daytrade 3 times in 5 business days under the PDT rule.

I don't want the SEC's "protection", it's nothing but a hindrance and probably a larger obstacle than ASD for me personally. Everyone needs money to survive, and I could make enough easily if I wasn't subjected to this tyrannical organization that works on behalf of the ultra-rich and against the poor. The PDT rule is not benign, calling it "protection" is an absurdity in my mind!



matt
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01 Dec 2010, 12:18 am

If you are a successful daytrader you could make more than $25,000 and not be hindered by the limit.