Like many frivolous regulations in-place, it was put in place by government regulators to protect people from themselves.
Believe the understanding was, the more money an investor can put up, the more experienced he must be.
Hi there,
I've been trading the market for just a few months. My cousin actually told me about this website (http://pennystocks.toptips.org)and I signed up immediately after. This is my honest review about their method. I'm not someone who has a lot of time to be researching for ideas because I work many hours. they made it incredibly easy for me to make money in the market. Their reports are easy to read and follow. I've tracked most of the stock ideas that I've received in my e-mail from them and MANY have seen some nice gains after their announcements. I've made a nice profit (55% return on my investment on one, and 112% on the other!) on a couple of suggestions he's given and plan to start trading his ideas a lot more.
For more info: http://pennystocks.toptips.org
The secret word of trading success is "organized". You can't be successful without a strategy, a plan and some kind of technological support. I use a software called "autobinary signals" that is helping me a lot. There are plenty of them on the market. I recommend this one because it's very easy to use (you don't have to be an expert or have special skills to make money with it).
Check it out here. It's worth it: http://tradingsignal.toptips.org
Your plan is to make 100 trades a day (let's assume $5 per trade because they will be small). The US stock markets are open 6-1/2 hours per day which works out to right around 15 trades per hour or one every four minutes. (Pre and post market will add time but the trades will be harder to fill and for all intents and purposes not practical) And you operate under the insane delusion that you will "make money on every trade." You will spend $500 per day on commissions, which is 25% of your $2,000, a hole even Warren Buffett couldn't crawl out of. Sometimes rules are there to protect people who are much too stupid for their own good.
The SEC believes that people whose account sizes are less than $25,000 may represent less sophisticated traders, who may be more prone to being misled by advisory brokers and/or tipping agencies. This is along a similar line of reasoning that hedge fund investors typically must have a net worth in excess of $1 million. In other words, the SEC uses the account size of the trader as a measure of the sophistication of the trader.
They're not making money. The more you have with a brokerage, the more they'll reduce or overlook trading fees.
You have to be able to pay transaction costs which can be substantial if you're trading dozens of times a day.
daytrading is a racket. They demand high dollars so they can take your high dollars. Why bother opening an account for 2k when I can take your 25k... You're better off taking 25k and buying lottery tickets... just sayin.
no
whats the difference if i trade 100 times a day with a $25,000 dollar account or I trade 100 times a day with a $2,000 account if I'm making money on each trade?
