My journey as a trader for the last 12 years has been filled with ups and downs. I have tasted both victory and defeat in this challenging field. However, one obstacle that consistently hinders my progress is the pattern day trading threshold. Currently set at $25,000, it restricts me from comfortably trading options.  As I am sure it restricts many of you.  Lowering the PDT threshold would help level the playing field for the average trader!  

Trading stocks with a $25,000+ account was never an issue for me.  They are not that volatile, and it is relatively simple to manage your risk.  However, with stock options, they are extremely volatile and difficult to trade.  Personally, when I trade options with an account that is over $25,000 I find myself making mistakes I normally wouldn't.  I also find myself trading in fear.  Whereas, when I trade with smaller sums of money, I can trade with no fear at all.  I am not afraid to lose a few thousand dollars, but I am afraid to lose $25,000.  Trading without fear is very important to the success of a trader. 

The current threshold of $25,000 was established by the Financial Industry Regulatory Authority (FINRA) in 2001 to protect inexperienced investors from potential losses.  However, this rule limits traders with smaller accounts from trading effectively.  One of the most important rules of  trading is cutting your losers. When you only have 3 day trades per week, exiting your losers becomes very difficult.  Having a limited number of day trades per day or per week reinforces bad habits on traders with smaller accounts.  The habit of holding losers!  

Knowing you only have a certain number of day trades, traders are forced to hold losing trades when they know they should sell them.  They could limit their day trading, but they would not be getting the same opportunities as people with larger accounts. They could also trade on a cash account, however, they would still be limited.  The only way to make it fair for people with smaller accounts is to lower the pattern day trading threshold.  

Lowering this threshold to $3,000 would provide a more accessible entry point for seasoned traders who understand the risks involved but are financially restrained by the current requirement. This change could potentially democratize day trading and make it more inclusive for all.

Not only would this greatly benefit traders with smaller accounts, it could also potentially bring in more profits for hedge funds and brokerages as well.  Hedge funds could make more money as there could potentially be more liquidity in the market, leading to larger moves.  Brokerages could make more money, as more trades could be placed, leading to higher commissions, where applicable.  And the biggest winner of all, retail traders could day trade with no restrictions whatsoever on a relatively small account.

We urge FINRA to reconsider its stance on pattern day trading rules and lower the threshold from its current level of $25,000 to a more accessible sum of $3,000. Please sign this petition if you believe in creating equal opportunities for all traders regardless of their financial standing.