Proposal: Remove the PDT rule + day-trading margin requirements The Pattern Day Trader (“PDT”) rule under NASD Rule 2520 and NYSE Rule 432 limits small account retail traders by limiting margin accounts under $25,000 to 3 day trades every 5 rolling business days. PDT is discriminatory towards individuals with small brokerage accounts and only hinders an individual’s ability to profit in markets. Enforcing PDT does not allow individuals to engage in various strategies and may even force losses on one’s account. That is, PDT may force individuals to take riskier trades and flagged traders may have no control over their positions. One should be allowed to enter/exit positions without consequences regardless of how many day trades they have executed. They should be allowed to invest and trade their own money as they see fit. https://petitions.whitehouse.gov/petition/proposal-remove-pdt-rule-day-trading-margin-requirements
I was thinking of this just last week. I think Bernie Sanders must be a big fan of this rule, since he thinks he's really getting those fat cats by taxing stock trades.
