Laws against day trading?

What resources do they drain, other than their own?

The damage they do is to their own accounts, plus they add a small amount of noise to the market pricing structure, but they don't do any significant harm that I can think of.

Just because I think long term is years, and daytraders think long term is overnight, doesn't mean they don't have a right to trade that way. Their brokerage fees subsidize mine, for one thing, and lemming-like momentum moves by daytraders sometimes provide opportunities for long-term value investors to step in.

Under no conditions, ever ... no way imaginable...

would i ever want the federal government to tell me how often i could sell or buy stocks...

Thats an awful lot of oversight required... payed for by us (taxpayers)... that could be deployed elsewhere. Why must we always stop people from harming themselves??? Where's the value of doing what is right.. if those who do wrong are coddled like children???.. and if people are a success more power to them.

I agree that day trading isn't a productive use of resources...and is in general a detriment to most peoples finances....its fantasy land for most....

but that is secondary to the bigger problem you propose to create which essentially is the government telling the free market how often it can buy and sell anything..... to a day trader stocks are inventory in need of turn over.... do you propose the govt dictate inventory turnover to a retail store??

You do realize once a stock is issued... the company no longer receives proceeds for that stock... whether it changes hands or not?

Do you propose limiting the volatility of the market beyond Curbs and suspension of trading? .... its pointless... even if you shut down trading... the stock just re-opens at a given pricce the next day (gap-open) (granted panic may have subsided)

Would taxing short term capital gains really only harm the stock traders??? what about all other capital investments that are productive for the economy that would be caught in the net??

Short term traders pay income tax on their gains... you do realize income tax can get very steep at the upper levels... taking a 35% chunk off the top of your gains and not helping on your losses already affects people trading.

Well

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Hope it helps.

why should they not be allowed to day trade? If someones investment strategy is not the same as yours, its wrong? & should be illegal? They are already taxed at a higher rate than long term investors. They pay short term capital gains on all the money they make, which is taxed as regular income. Long term holders are taxed at 15%.

What resource is drained & what productivity is being dwindled? The only resource there is in day trading is the investors own money. They seem to be productive in trading. Just b/c its not for you doesnt mean it should be outlawed.

Why are you against day trading stocks? Are you against people who buy fish from the incoming boats and sell it that same day in the market? How is it different? They are providing a service.

Why?

First, this would be against economic freedom.

Second they provide liquidity to the market which is a very good thing. There's nothing worse than a market without liquidity.

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What resources are we (Daytraders) draining, exactly?

Why don't we tax $10.00 USD for each pack of cigarettes?

Why don't we tax $10.00 USD for each beer?

Why don't we tax $10.00 USD for each bullet?