Date:    01/30/2000  11:09 AM


Subject: File Number SR-NYSE-99-47
RE: SEC NEW MARGIN RULE UPDATE PAGE
     
     
From a Daytrader:
     
As I understand it, the current rule is you must have 2K in your account to 
daytrade on margin.  The new proposal raises it to 25K.  This means, if you 
are identified as a daytrader/pattern trader and you do NOT have a minimum 
balance of 25K in your account, you can NOT trade on margin.
     
I feel that this is not only unfair but discriminatory to the smaller 
daytrader.  The premise behind this proposal, as stated by both exchanges, 
is to help protect the smaller investor.  That being the case, then why did 
you raise the buying power from 2:1 to 4:1.  In other words, if you have 10K 
you can now buy 40K worth of stock (if you have greater than 25K in your 
port).  If you are trying to protect traders from the dangers of daytrading, 
why give them more rope to hang themselves with the additional buying power.
     
Something smells in Denmark, and we aim to find out what it is.  The 
exchanges opened the doors with SOES and other tools to the small daytrader 
and said "come on in and play".   Well, we, the small daytrader took that 
offer and came in force.  Daytrading has taken off.  The shear numbers of 
small daytraders making their own trading decisions on their personal laptop 
is staggering.  So staggering, that we have created HUGE volatility in the 
markets.
     
Although I agree that daytrading has increased risk, I do not agree with 
your proposed solution.  The correct solution is education, not taking away 
a valuable tool that is available to anyone else.
     
You are basically saying that someone with a 25K portfolio makes better 
trading decisions than someone with a 15 or a 20K port.  Nonsense.  Stop 
loss discipline and a regimented, disciplined approach to trading is the 
key.
     
This is wrong, and should be opposed by all traders, not just day traders.
     
This should NOT be passed.
     
     
Sincerely,
     
     
Jeff Nadel