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

To: TraderAlan who wrote (12854)	5/3/2001 8:32:55 PM
From: Brandon	Read Replies (1) \| Respond to of 18137

Dang Daytrading Industry just hasnt found the right politician to buy off...that just shows that we really are not that sophisticated :) Rogan and I had the same talk last week though and I tend to agree...I certainly dont see it as the greatest thing to happen for my business. One thing that I do suspect might happen is that people may start trading futures....of course for that, if we want to write newsletters, have rooms etc..we will have to be smart enough to pass a series 3. Brandon

To: TraderAlan who wrote (12854)	5/3/2001 9:26:21 PM
From: aldrums	Respond to of 18137

"...this will kill growth in that industry..." Alan, if this is true, then I think the rule will be repealed, so there is hope after all. :-)

To: TraderAlan who wrote (12854)	5/3/2001 11:42:37 PM
From: Apakhabar	Read Replies (2) \| Respond to of 18137

I can't fathom how being classified as a PDT would preclude traders from trading as many times as they wished if not on margin. The rule has to mean you need 25k to qualify for margin, not to simply be allowed to have an account. Personally I don't think it will be the end of the world for anyone. The vast majority of traders with less than 25k are going to be beginners, and not being able to trade using margin might actually help them preserve their capital while they're learning. As for the businesses run by contributors here, I doubt they will be affected. For every customer you lose because he couldn't maintain an account, you might keep one because he didn't blow out his account through a margin call.

To: TraderAlan who wrote (12854)	5/3/2001 11:53:31 PM
From: Dan Duchardt	Respond to of 18137

Alan, You could be right. I've heard it both ways. What is the consensus? From the Nasdaq proposed rule change submitted to the SEC Day Trading (i) The term “daytrading” means the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account except for: a. a long security position held overnight and sold the next day prior to any new purchase of the same security, or b. a short security position held overnight and purchased the next day prior to any new sale of the same security. I added the bold emphasis. Sounds to me like you can do all you want with your own money in a cash account. The only thing to stop you would be Reg T, and it say nothing about how many times a day you trade, only that you always use your own money to cover the purchases. Even with the definition in the proposal, you are allowed to close a position and reopen it once each day without being a daytrader. Dan