Petition To Terminate The Poverty Enhancing PDT Rule

Petition To Terminate The Poverty Enhancing PDT Rule

36 have signed. Let’s get to 50!
Petition to
Poor people who have tried to invest in the market but have been sent back down the ladder by PDT

Why this petition matters

The PDT rule has been brought to the American people as a "safety net" when in reality it is simply a protection of larger money holders, ie. Hedge Funds, Politicians, and those who stand to lose from not being able to bleed the American public who are poor and have no been given more than $25,000 to play with by their parents. What hard working American has $25,000 dollars lying round to play with?  This keep liquidity out of the market and ensures that the money channel bleeds upward for the rich kids.

From Day

"If you reside in the US, one of the most important rules concerns whether you fall into the category of a ‘pattern day trader.’ These rules and stipulations are born from the Financial Industry Regulation Authority (FINRA) and are applicable to all pattern day traders in the US who hold a margin account. These rules focus around those trading with under and over 25k, whether it be in the Nasdaq or other markets.

Pattern Day Trader
So, what is a ‘pattern day trader (PDT)?’ If you make more than three day trades in five business days, provided the number of trades is more than 6% of total trades in your account during this period, you meet the minimum criteria.

What Constitutes A Day Trade?
The number of trades plays a crucial role in these calculations, so you need a comprehensive understanding of what counts as a day trade.

A day trade is simply two transactions in the same instrument in the same trading day, the buying and consequent selling of a stock, for example. The two transactions must off-set each other to meet the definition of a day trade for the PDT requirements. So, if you hold any position overnight, it is not a day trade.

Number Of Trades
The total quantity of shares can sometimes confuse individuals, greying the rules and leading to costly mistakes. Below are several examples to highlight the point.

If you enter a stock position with a single order of 2000 shares and exit the position with two 1000 share orders, all three trades will be grouped together as one day trade.
This is the same the other way around. If you open a position with two 1000 share orders and close your position with one order of 2000 trades, again this will be considered one day trade.
Say you opened with two 400 share trade orders and closed with two 400 share orders. This would constitute two day trades, not one, as you would have two transactions at either end.
The Rules
Once you’ve met these criteria and are considered a pattern trader, there are certain rules and stipulations you must follow:

Minimum account balance – The most demanding is holding an account balance of at least $25,000. If the total value of assets falls below that figure you will not have any buying power. It is also worth noting you cannot meet this requirement by cross-guaranteeing separate accounts. You can, however, meet this minimum requirement with a combination of eligible cash and securities.
Existing sale conditions – Note the sale of an existing position from the previous day and its subsequent repurchase is not considered a day trade.
Buying power – Your day trading power will be four times the New York Stock Exchange (NYSE) excess as of the close of business on the previous day. The ‘time and tick’ method of calculating day trading is acceptable. If you exceed this limitation a margin call will be issued.
Outstanding margin call – If the account already has an outstanding margin call, your buying power will be reduced to just two times the NYSE excess. In addition, the ‘time and tick’ calculation technique cannot be used whilst the margin call remains outstanding. Instead, the aggregate method, which uses the total of all day trades will be used.
Failure to meet margin call – If you fail to meet a margin call for more funds within five business days, your buying power will be further reduced to just one times the NYSE excess for ninety days (cash trades only), until you’ve met the call.
Minimum requirements – When you deposit funds to meet minimum equity requirements or to meet margin calls the funds must remain in your account without withdrawals for at least two business days."

Notice the "If you reside in the US part." News flash there is NO OTHER COUNTRY IN THE WORLD who restricts their citizenry from actually being able to trade and it is part of the reason why upward mobility is far greater in Europe than the Untied States.

The PDT rule like many of the RULES not LAWS than have been handed down by our government with good intention is now completely outdated and specifically designed and tweaked to make retail commit money to losing trades so that they eventually walk away from the "FREE MARKET" broken.  I used to work for the corporate banks, and they love the PDT rule. They actually call it the engine of the money train.  Make the economy free and more fair for the little guy.  Get rid of the poor-maintaining PDT rule.

Also, if you live in the united states and want to just get around it use Capital Markets Elite Group. It's 100% legal for now.

36 have signed. Let’s get to 50!