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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (2116)	9/18/2000 7:25:41 AM
From: Don Pueblo	Respond to of 2120

OK! My opinion is that anyone with less than 25 grand should not be day trading at all. It's way, way too easy to take money away from a new person with a small account. As far as the accounting procedures, it seems very simple to me. A person has 25 grand in the account, they can buy whatever the clearing firm says they can buy on margin, or 25 cash if it is a cash account. If they lose five grand in five minutes, they can now only buy 20 grand cash or whatever the clearing firm says they can buy on margin. It's not hard to build a software program to implement it. Another thing that I would do if I were a brokerage firm, I would have a minimum balance requirement. For example, no matter what the day trader had in his account to start off with, if he went below ten grand, his account would be frozen until he put more money in or transferred to another firm. (Of course, that will never happen. <G>)