Thanks, I kinda thought that's the way it should be, I'm set up on margin also but never use it. I would never use margin, too big of a gamble.
Lots of unexperienced traders have used it on bad trades and have been forced to sell their homes or borrow money.
If the new rule was like everybody thinks it is it would force a majority of traders out of the market.
I think it's being implemented to protect the new investors more than anything else, I guess the SEC figures if we have 25,000.00 cash laying around we can either afford to lose it or we have made the money from daytrading and know what we're doing.
When the online craze first hit millions of investors came online with a small amount of money and fell for a lot of P & D and lost it.
Also so called daytrading schools taught investors just the basic of trading, naturally they charged them for the lessons, they set up offices where the trainees could actually trade, I remember reading a report amount the amount of money lost in those scams.
I think if my memory serves me correctly that was the reason for the shooting in GA. at a daytrading school in 1999.
The man had lost all his life savings and went crazy, walked into the brokerage firm and started shooting.
I actually view it as a good thing, it will protect the uneducated investor.
Associate yourself with those of good quality if you esteem your own reputation: for it is better to be alone than in bad company. George Washington
