Let me share a story. I have a small trading account, less than $1,000. I’m working to build it up, and for that, day trades are crucial. Every decision I make now comes with the added question: “Is this trade worth using one of my limited day trades?” That’s mental overhead, and it doesn’t protect my account—it hurts it.
We’re in 2024. We have tools like stop orders to manage risk effectively. The argument that pattern day trading rules exist to prevent account blowups feels outdated and, frankly, insulting. Applying a one-size-fits-all rule to every retail trader with less than $25,000 assumes regulators know better than the traders themselves.
Here’s the irony: PDT is meant to help manage risk. But in my case, it forced me into a trade that pushed me over the PDT limit. Why? Because not executing that trade would have blown up my account. So, how exactly does this rule protect me? Instead of rewarding responsible risk management, I’m penalized for it.
The reality is that PDT rules don’t account for individual circumstances, tools, or strategies. They limit growth, punish responsible trading, and fail to adapt to the tools and insights available to today’s traders.
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Mike Borsare Comment On Regulatory Notice 24-13
Let me share a story. I have a small trading account, less than $1,000. I’m working to build it up, and for that, day trades are crucial. Every decision I make now comes with the added question: “Is this trade worth using one of my limited day trades?” That’s mental overhead, and it doesn’t protect my account—it hurts it.
We’re in 2024. We have tools like stop orders to manage risk effectively. The argument that pattern day trading rules exist to prevent account blowups feels outdated and, frankly, insulting. Applying a one-size-fits-all rule to every retail trader with less than $25,000 assumes regulators know better than the traders themselves.
Here’s the irony: PDT is meant to help manage risk. But in my case, it forced me into a trade that pushed me over the PDT limit. Why? Because not executing that trade would have blown up my account. So, how exactly does this rule protect me? Instead of rewarding responsible risk management, I’m penalized for it.
The reality is that PDT rules don’t account for individual circumstances, tools, or strategies. They limit growth, punish responsible trading, and fail to adapt to the tools and insights available to today’s traders.