Jeff from Austin thought his daughter had done everything right with her finances. She followed the baby steps, built an emergency fund, contributed to her retirement account and kept a strict budget. But a recent call to “The Ramsey Show” revealed how one hidden decision by her husband turned their family upside down. Financial Confession After A Major Blow “My son-in-law came to confession to all of us,” Jeff told co-hosts Rachel Cruze and Jade Warshaw. “He did day trading and essentially was financing ...

Delmaine Donson/Getty Images; Jenny Chang-Rodriguez Day traders say trading outside their day jobs can be like living a double life. Many who aspire to go full-time say they've developed strategies to balance work with their side hustle. Their top tips included setting stop losses, trading the premarket, and trading overnight. Flicking through multiple screens. Checking the markets at 1 a.m. Trading from the bathroom stall at work. Being a day trader isn't easy — particularly if you're a trader who ...

Group 1 - The article emphasizes the importance of long-term dividend growth investing as a successful strategy compared to other trading methods [1] - The author has a beneficial long position in several companies, indicating a positive outlook on their performance [1] Group 2 - The article does not provide specific investment recommendations or advice, highlighting the need for individual assessment of investment suitability [2] - It notes that past performance is not indicative of future results, reinforcing the importance of careful analysis [2]

Core Viewpoint - The Financial Industry Regulatory Authority (FINRA) has approved changes to eliminate the minimum equity rule for pattern day trading, pending SEC approval, which will allow more retail traders to engage in this trading strategy [1][3]. Group 1: Changes in Trading Regulations - The new rule will remove the requirement for pattern day traders to maintain a minimum balance of $25,000 in their margin accounts, which has been a barrier for many retail traders since 2001 [3][6]. - Instead of a fixed-dollar threshold, the holding requirements for pattern day traders will now be based on the amount of risk they take during the day, aligning with existing maintenance margin rules [6]. Group 2: Market Trends and Retail Trading - Retail trading has significantly increased, accounting for 20.5% of the market's daily trading volume, up from 10% in 2010 [4]. - Research indicates that the median investor spends only six minutes researching each trade, raising concerns about the preparedness of new pattern day traders [4].

Trading Performance - The trader aimed for a daily profit goal of $4,000 [1] - The first trade resulted in a profit exceeding $4,000 [1] - The second trade incurred a loss [1] - A subsequent trade on Soul yielded approximately $1,800 in profit [2] - The total profit for the day surpassed $5,400, exceeding the daily target [2] Trading Strategy - The trader employed short positions in crypto trading [2] - Stop-loss orders were used to manage risk [1][2] - The trader adjusted stop-loss levels to secure profits [2]

Core Points - FINRA has approved amendments to replace current day trading rules, potentially eliminating the $25,000 minimum equity requirement for pattern day traders if approved by the SEC [1][6][7] - The proposed changes aim to adapt to the modern trading environment and incorporate feedback from various stakeholders [6][7] Day Trading Definition - Day trading involves buying and selling the same security within the same day to profit from small price movements, applicable to all securities including options [3] - Day trading in a cash account is prohibited; all securities must be fully paid for before sale [4] Pattern Day Trader Criteria - A trader is classified as a pattern day trader if they execute four or more day trades within five business days, with these trades representing over 6% of total trades in that period [5] Rationale for Changes - The changes are part of FINRA's efforts to enhance regulatory effectiveness and efficiency, responding to the needs of member firms and investors [6][7] - This would mark one of the most significant updates to trading rules since the introduction of the pattern day trading rule in 2001, which was designed to protect inexperienced investors [7]

Core Viewpoint - Regulators are moving to eliminate the $25,000 minimum equity rule for pattern day trading, making active day trading more accessible to smaller accounts [1][2]. Group 1: Regulatory Changes - The Financial Industry Regulatory Authority (FINRA) has approved amendments to replace the $25,000 minimum equity rule, pending approval from the Securities and Exchange Commission [1]. - The previous rule required traders to maintain a minimum account balance of $25,000 to execute four or more day trades within a five-business-day period, established in 2001 due to concerns over excessive risks taken by small traders [2]. - The new intraday margin rule will base intraday buying power on existing maintenance margin requirements rather than a fixed equity minimum, reflecting advancements in technology and market access [3]. Group 2: Market Impact - The rule change is expected to increase options trading and enhance activity for brokerage firms like Robinhood, which saw a 1% increase in shares following the FINRA announcement [4].

Trading Strategy & Analysis - The trader uses daily bias analysis to determine the market's overall direction (up or down) for the day, which helps in identifying smaller, high-probability trade opportunities [2] - The trader identifies trends, waits for breakouts, and targets fair value gaps, aiming for a 5x return on risk [10][12] - Risk management is crucial, with the trader typically risking $1,000 per trade, aiming for profits between $3,000 and $7,000 per trade [12] - The trader emphasizes following the market's flow rather than trying to predict it, adjusting positions based on market movements and signals [27][29] Trade Execution & Results - The trader locked in a profit of $3,766 on one trade, representing a 5.5% return on the risked capital [1][45] - The trader made a profit of $3,300 on trade number six of the day [67] - The trader ended the day with a 57% win rate across seven trades [80] - The total profit for the day was $5,530, primarily driven by two successful trades [81] Risk Management & Psychology - The trader emphasizes the importance of containing risk when wrong and letting winners run, rather than focusing on being right all the time [33][81] - The trader highlights that professional trading relies on understanding statistics and averages over time, rather than the outcome of individual trades [33]

Investment Strategies - Day trading can yield quick profits, exemplified by a $200 gain before lunch [1] - Long-term investing can generate substantial returns, such as $200,000 over a decade through passive holding [1] Risk and Return - Day trading involves active management and potentially higher risk for immediate gains [1] - Long-term investing emphasizes patience and minimal intervention for potentially significant, albeit delayed, returns [1]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]