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Why not make the margin 500,000 or 5,000,000. I tend to agree with Linda
it's the individual's responsibility to decide what risk to take. They
should be dually warned and an adjustment to the margin may be appropriate.
Lets say that if the average volatility was 10 when the margin was set at
2000 and it's now 30 then maybe the margin should be adjusted to about 6000
or better yet a percent of the volatility on an on going basis. I believe
that's how it's done with futures.
Brent
----- Original Message -----
From: "Linda Swope" <lswope@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, February 01, 2000 10:48 AM
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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