This petition is about traders against the pattern day trader rule. This rule was enlisted to help traders with accounts less than $25,000 but, in fact, this rule does not help the traders at all. Some reason why this rule hurts small-account traders are:
1. The rule encourages traders to hold losing positions rather than take losses quickly. Thus, the PDT does not fulfill its purpose (to protect traders), and instead increases their risk.
2. Overnight trades are riskier than day-trades. Overnight trades can gap up or gap down significantly, increasing potential losses. Thus, PDT does not fulfill its purpose (to protect traders), and instead increases their risk.
3. The rule penalizes traders for taking losses quickly....hurting the trader rather than helping him.
4. If a small-account trader does 4 day trades, his account may be suspended, yet he has not committed a crime against anyone, and has not hurt anyone in any way.
5. Commissions are low enough in today's trading world that frequent trading does not hurt a trader as it may have back when this rule was implemented.
6. A trader may have two accounts...one is $100K and the other is $20K. In one account, he is considered "sophisticated" enough to be day trading, yet not in the other account. This is illogical, for he is the same person.
7. People should be allowed to invest their money as they choose...whether that is in a day trade, or a long-term buy/hold.
By signing this petition you agree that you are for Traders Against the Pattern Day Trader rule and that you wish the rule would be discarded.
Total Signatures to Date = 431
