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Because that trader (with three years experience) does not remember
1987, let alone the mid-1960s until 1975/1982)! Margins should have been
raised long ago. The only reason why they have not been, is that there
are too many other ways to borrow for stocks (from 401K plans, from the
bank -- yes people are taking personal loans to buy stocks) and via home
equity loans. So, it is not clear that raising margins will help. And,
I believe the daytraders do not even fall under Reg-T, so there are no
direct margin requirements even put on them! Something needs to be done.
That is for sure.
---
Steven W. Poser, President
Poser Global Market Strategies Inc.
url: http://www.poserglobal.com
email: swp@xxxxxxxxxxxxxxx
Tel: 201-995-0845
Fax: 201-995-0846
----- Original Message -----
From: Linda Swope <lswope@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, February 01, 2000 12:48 PM
Subject: [RT] Re: SEC New Margin Rule Proposal
> Sounds reasonable to me. In this volatile market, I can't imagine any
> > responsible broker extending margin to someone with only $2K in his
> > account. That could be wiped out in a New York microsecond and the
> > broker would be left holding the bag. I'd apply it to ALL traders
and
> > forget trying to define a "pattern daytrader."
>
>
> Yes, but what about the trader with $20,000 and 3 years of experience.
Why
> are you punishing him or her with this rule? Having lots of money in
your
> account doesn't mean you can make better trading decisions than the
little
> guy. When I had 6 figures in my account, I made no trading decisions.
It
> was just a computer game with occasional cash prizes. Study, hard
work and
> dedication make successful traders, not some arbitrary amount of
money.
>
> If the NYSE has this noble need to "protect" traders, let them begin
by
> restricting margin for new traders, not little traders. But I don't
condone
> restricting anybody. Trading is just another attempt at
self-employment and
> we all have that right.
>
> Linda
> Swope's Mountain Photography
> http://www.swopephoto.com
> linda@xxxxxxxxxxxxxx
> Climb the mountains & get their glad tidings: Peace will flow into you
as
> sunshine into flower; the winds will blow their freshness into you &
storms
> their energy, & cares will drop off you like autumn leaves. John Muir
1838 -
> 1914
>
>
> ----- Original Message -----
> From: Dennis Holverstott <dennis@xxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Tuesday, February 01, 2000 7:59 AM
> Subject: [RT] Re: SEC New Margin Rule Proposal
>
>
> > > As you may have heard already, NYSE and NASD are proposing to
raise the
> > > minimum equity requirements to trade equities on margin from the
current
> $2K
> > > to $25K for "pattern daytraders" - whatever that means.
> >
> > >
> > --
> > Dennis
> >
>
>
>
>
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