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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dan Clark who wrote (6689)	1/30/2000 6:32:00 AM
From: LPS5	Read Replies (1) \| Respond to of 18137

"The driving force behind this is the NYSE and NASD, NOT the regulators." The NYSE and NASD are very much the regulators, Dan. In fact, they're called SRO's - the self-regulatory organizations - of the securities industry. They were designated as such a long, long time ago so the governmental body (SEC) wouldn't have to get involved in every piddly little dispute between customers and brokerage entities. Among other things, the SEC has the muscle of Federal authority and can overturn NYSE or NASD rulings. Look at the caption under "Commission Opinions": sec.gov You might also want to check these out. nasdr.com nyse.com LPS5

To: Dan Clark who wrote (6689)	1/30/2000 6:38:00 AM
From: Eric P	Respond to of 18137

Dan: I agree that day traders should have $20,000+ in their account to be adequately capitalized and improve their odds of success. In fact, I think $50k is a better number. The difficulty I have is mandating that you cannot daytrade unless you meet the proposed higher minimum. Some people will be naturally gifted traders, capable of turning $1000 into $1 million in a few years or less. Should we prevent them? Let's also consider the natural born loser. I would much rather him get his feet wet in daytrading by blowing out a $5k account, than mustering up all of his savings and then blowing out a $25k account. In the end, it comes down to personal responsibility. Who is responsible for losses in a daytrading account? I believe that every daytrader makes his own decision on every order and every trade. Those not taking accountability for their performance (good or bad) are destined to lose. I'm tired of the government protecting me with all of this regulation. Although I don't smoke, I believe the tobacco lawsuits should all be thrown out of court. Ditto for any similar handgun lawsuits, etc. Perhaps the government should next sue the kitchen knife manufacturer that made the weapon used by Lorena Bobbitt. -Eric

To: Dan Clark who wrote (6689)	1/30/2000 8:29:00 AM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Dan, Clearly the B/Ds have been good soldiers on this and fallen into line behind the NASD. I think they believe it will take some heat off of them. In their minds they don't want the small accounts. Unfortunately, they haven't done their homework and don't realize that their larger accounts for the the part started as very small ones that worked their way up. By removing these from the equation, their food chain can easily be destroyed as the ability to experiment with limited risk (yes small accounts = limited risk) disappears. One good thing that will come out of this if it passes will be a resurgence in swing/position trading. Frankly most traders now churning their accounts by day trading will have better results if they moved to 1-3 day holds. In respect to this strategy, the proposal tries to damage liquidity by penalizing you for selling a loser the same day that you bought it (do it too much and it's a "pattern"). I think that invites class action filings against the exchanges if it becomes part of regulation. If that happens, I promise that guys like me will be publishing new strategies to get around these regulations. This will include starting longer positions right at closing when the odds are in your favor and, depending on the language, buying a proxy for your positions (20,50 shares) near closing and just adding to those that favor your play the next morning. Finally consider one comforting fact: whenever these dunces try to close an advantage that others are using against them, they unwittingly open up new ones that smart traders can capitalize on for months. Alan

To: Dan Clark who wrote (6689)	1/30/2000 9:38:00 AM
From: Dave O.	Read Replies (1) \| Respond to of 18137

< Without margin, traders with accounts less than $25,000 won't be able to short when they should be shorting > Dan, Deviating a bit from your discussion let me add the following. Anymore, lots of people might consider themselves traders, some just not full time. But I think a high number of the part timers, who may have smaller accounts, don't play the short side. I'd venture to say that even some full time traders only go long, which I don't comprehend. I recall lots of people last year saying how well they did through early May and then didn't do so well for a few months. Seemed to coincide with a great run overall in the market, followed by some short term down trends and more choppiness. Dave