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RT's,
In 1987, I 'thought' I was a 23 year old "stock market wizard" (with a small
inheritance from my mommy). Unlike today's CNBC watcher daytraders, I
actually had to take time to read about hot stocks in Barron's, Fortune, and
Forbes! The old saying, "Don't confuse brains with a bull market" orginated
from from my broker on Black Monday when my $45,000 account went $5,000
debit on that fateful day back in the fall of '87.
Speaking from experience, I know that it wouldn't have mattered what the
minimum margin account size was back then. I would have been fully
margined. If it was $2k I would have had $4k in stock, if it was $25k I
would have had $50k. If the margin requirement is 50% for everybody I don't
really see how a $2,000 trader going debit is any worse than a $25,000
trader going debit (unless of course, your assuming the $25,000 hasn't sunk
all his eggs in that one basket. Which is probably a pretty naive
assumption.)
And finally, losing everything back in 87 was the best thing that every
happened to me. I learned a tremendous amount about myself and what's
important, my friends, risk management, and trading. Maybe a Black Monday
is just what a lot of today's CNBC e-traders need in thier lives.
Just some thoughts,
Howard
>From: Levent Erbora <erbora@xxxxxxxxxxxxx>
>Reply-To: erbora@xxxxxxxxxxxxx
>To: <realtraders@xxxxxxxxxxxxxxx>
>Subject: [RT] SEC New Margin Rule Proposal
>Date: Tue, 1 Feb 2000 02:24:01 -0500
>
>
>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.
>I found out today that NYSE already filed this proposal with the SEC around
>Jan 13 - Jan 14,
>and the public comment period already started and is about to end on Feb.
>3!
>Funny how quietly this was done without any announcements or news
>releases!!!
>If you are as infuriated as I am about this totally ridiculous and stupid
>proposal and will be adversely affected as I am sure most of us would be,
>please consider sending your comments to SEC before the Feb. 3 deadline.
>All the info, background and procedure is available at
>
>http://www.mtrader.com/secupdate.htm
>
>Best regards,
>
>Levent Erbora
>
>PS: I have absolutely no affiliation with mtrader.com whatsoever. I am not
>even a customer. I am just a private trader trying to make a living
>daytrading stocks :-)
>
>
>
>
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