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

To: KFE who wrote (6751)	2/1/2000 1:42:00 AM
From: Dan Duchardt	Respond to of 18137

Ken, Yes, that should help, except that I know I have read it before, and I've read it all again tonight until my head is breaking. No matter how many times I read it, and Regulation T, I keep coming to the conclusion that one of the examples cited in this Notice to Members is wrong (#3, the last paragraph: If you have a Reg T excess of $50K at the beginning of the day, and you lose $20K daytrading, how have you suddenly created a Reg T deficiency? You still have $230K of your money in the account, and you are holding securities purchased for $400K. You still have a $30K Reg T excess.) In my opinion, which I know means absolutely nothing in the big scheme of things, Rule 2520/431 is based on a very liberal interpretation the Reg T maintenance provision. Then somebody interprets the Reg in the most conservative manner to come up with the notion of "Free Riding". The two are totally inconsistent, but of course that doesn't matter. Once again we limited humans have written down a regulation that failed to anticipate the possibility of a circumstance (in this case "daytrading") that opens it up to endless interpretation and reinterpretation to suit one interest group or another. Probably time to just let it rest and adapt to the fallout when it comes. Maybe find a broker who interprets things in a way that suits my interests. Dan