3 trades per 5 day PDT rule

I've been reading a little about this rule. They say it's to protect the small investor. The idea of that is laughable. Who do they think they're fooling? I'm quite sure large hedge funds do not care to trade against someone who has a $5k account. I can only assume that most large hedge funds wouldn't even consider a $5k trade as that amount is pittance to them.

If they really wanted to protect the small investor they would have found a way to make it illegal or at least limit hedge funds/institutions to trade against retail. Now, such a thing is equally laughable when considering the SEC is just there to protect them.

The game is rigged. Until you fully understand that you will just flounder around winning some, losing some, until eventually you end up losing it all.

The gov't protects big business. Period. Name 1 (one) individual who got a bailout. Look at JP Morgan. What incentive do they have to even bother overseeing their trading operations? They'll just collect some other gov't bailout and start over.

So who is to blame? Government? No. A politician's best ally is the stupidity and apathy of the voting public. When career politicians like Barney Frank (and many others) get elected over and over again no matter how bad they perform their job or what ridiculous bills they support then the american public as a whole has no right to complain.

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Peter

jacknapier said:

I've been reading a little about this rule. They say it's to protect the small investor. The idea of that is laughable. Who do they think they're fooling? I'm quite sure large hedge funds do not care to trade against someone who has a $5k account. I can only assume that most large hedge funds wouldn't even consider a $5k trade as that amount is pittance to them.

If they really wanted to protect the small investor they would have found a way to make it illegal or at least limit hedge funds/institutions to trade against retail. Now, such a thing is equally laughable when considering the SEC is just there to protect them.

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Usually their is a limit to investing in a Hedge Fund and as a such small time investors do not stand any chance and they have to look for other forms of Investments.

wackypete2 said:

So who is to blame? Government? No. A politician's best ally is the stupidity and apathy of the voting public. When career politicians like Barney Frank (and many others) get elected over and over again no matter how bad they perform their job or what ridiculous bills they support then the american public as a whole has no right to complain.

[/rant]

Peter

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I think someone said it best, when he said, "If voting could change things, they'd make it illegal."

I just watched Boiler Room the other night. I was thinking that was somewhat allegorical to the entire market. You have these hedge funds and institutions that pitch stocks to retail knowing full well that they're going to devalue. How is that any different than what JT Marlin did? For instance, C was encouraging traders to buy EA before earnings and of course it tanked the next day. I saw that coming, but you can't tell me that the analysts there didn't know.