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I do not think that you can compare the two (opening a business and
borrowing to speculate in stocks or futures). Margin regulations were
created due to the huge leveraging before the 1929 crash. Brokers are
supposed to "know their customers". This is all being clobbered by
online trading. There are too many people that turn on CNBC and believe
the b-s Omega puts up about how they WILL get rich if they only write a
system.
I do not love the government crawling all over the place, but better
them then a bunch of idiots taking out personal loans at 10% to buy QCOM
on leverage helping cause a series of bankruptcies, foreclosures and the
next depression when QCOM falls to 10 (NO I DO NOT BELIEVE THAT WILL
HAPPEN OR THAT WE ARE ANYPLACE CLOSE TO THAT, JUST EXAGGERATING TO MAKE
A POINT).
When you start a business, the bank knows exactly what you are planning
to do (if you told them the truth). You have a business plan and a
target audience/customer base. You control a lot more than you do when
you are trading. There is no comparison between margin and business
borrowing. (Even if I do believe that the market is predictable to a
large degree, or I would not be a market analyst.)
Steve Poser
---
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: Real Traders <realtraders@xxxxxxxxxxxxxxx>; swp <swp@xxxxxxxxxx>
Sent: Tuesday, February 01, 2000 1:35 PM
Subject: Re: [RT] Re: SEC New Margin Rule Proposal
> Actually, this trader does remember 1987 and the money she lost on
Black
> Monday. But life is a journey and not a destination. A thousand tiny
> steps, Black Mondays and Blue Mondays included, lead us to where we
stand
> today. Every time we stumble, we stand up straighter, smarter and
faster.
> The NYSE doesn't have the right to regulate our paths because we have
$1
> less than the next stumbling trader.
>
> And so must something be done about the people who take out personal
loans
> to start their own businesses? Would you have "done something about"
me
> when I was 22 and put every penny I could get my hands on into a
photography
> business that had a high probability of failure? Thank goodness you
didn't.
> I'd hate to have missed all those smiling faces!
>
> 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: swp <swp@xxxxxxxxxx>
> To: Linda Swope <linda@xxxxxxxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>
> Sent: Tuesday, February 01, 2000 10:54 AM
> Subject: Re: [RT] Re: SEC New Margin Rule Proposal
>
>
> > 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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