The Casino Is NOW Open As Regulators Seek to Kill $25k Pattern Day Trading Rule (Oh God…)

Bah, Gawd that’s Ken Griffin’s music…

The SEC’s favorite hall monitor, FINRA, just voted to kill the most annoying rule in retail trading: the $25K minimum for “pattern day traders.” Yes, the same rule that forced every broke 22-year-old in a Robinhood Discord to take three trades and then sit on their hands the rest of the week presumably quoting Roaring Kitty affirmations.

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Naturally, this is a BFD… because if the SEC signs off, the gates swing wide open. Buying power will no longer hinge on keeping $25K in your account. Instead, it’ll be tied to intraday margin requirements… meaning you can now YOLO options contracts with the same dignity as the guy next to you who actually finished business school. For more context, this ball busting rule has been around since 2001, back when regulators thought small-time traders needed protection from themselves after the dot-com implosion. Two decades later, those same regulators looked around, saw TikTok gurus teaching iron condors to 19-year-olds, and decided “eh, f*ck it, let’s make it official.” LOL.

(Source: CNBC) 

Of course, the obvious winners are the big swingin’ brokerages like Robinhood, which suddenly get a new wave of degens to churn order flow. Meaning, every extra swipe at the buy button is more citadel-blessed pennies squeezed out of retail desperation. And Wall Street… the same guys who wrote the rule in the first place, are salivating, because nothing juices volume like some get rich quicker with induced false confidence after he just finished a “How to Buy the Dip” youtube video.

With that said though, FINRA dressed it up in “modernization” language. They said it reflects how “technology and market access have transformed retail trading.” That’s one way of saying Robinhood turned your phone into a slot machine and regulators finally decided to comp everyone free drinks.

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Translation: if you thought the market was already a meth-fueled roulette wheel, just wait until every undercapitalized wannabe scalper can trade like they’re running a hedge fund. Expect more spikes, more collapses, and way more stories of guys turning $2,500 into $13 before rage-quitting finance altogether. 

All jokes aside though, this is nothing short of PERFECT timing. Especially as we are continuing to ramp up the Stock Prophet Watchlist… where we issue out the most explosive opportunities that hit our screeners each day. In fact, so far this week our receipts are: 180% move on $BOXL, 38% move on $FTEL, 55% move on $ORIS, and a 30% move on $NUAI… all called BEFORE the massive run-ups. 

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Which means… which means… while the casino is about to be even more of a cesspool, where you look and WHO you follow is about to be even more important. So place your bets accordingly, friends. Until next time… 

At the time of publishing, Stocks.News holds positions in Robinhood as mentioned in the article.