We're gonna be talking about the effects of government policies on the stock market market and really stock trading in particular. So that being said welcome back everyone i lead trainer with stockstotrade tim bohen and listen you know i joke. Many times about this there's a lot of talk of cancel culture in that this will probably be thousands of videos thousands of live streams. Hundreds of podcasts.

This will probably be the one that gets me canceled. But anyway anyway what can you do so when it comes to you know i mean most of you probably if this is your first video maybe you don't know much about me. If you have been around maybe you've been on pre market prep. Where i'm live every single day 8.

30. Eastern click. The link below to check that out you probably know i lean free market. I lean.

I wouldn't say libertarian. I just you know lack less regulation and i think you know a man that i greatly admire knew i think was an amazing american ronald reagan said it best the nine most dangerous words in the dictionary are i'm from the government and i'm here to help okay so the bummer is one of the classic examples is the pattern day trader rule. Okay. Let's talk about the pattern day trader rule.

So it only applies to margin accounts keep in mind. I've done videos talking about ways to manage the pdt. Whether you're using multiple accounts or just using a cash account. Which gives you a little more flexibility.

But the pdt the pattern day. Trader rule is obviously a government policy that came after the com boom and you know. The idea is that they the government decided that people were over trading and that is why so many people got hurt during the com boom now my thing is and none of y.'all listened it wasn't over trading that hurt people during thecom boom. It was people that just couldn't trade.

A plan. I mean listen think back to the com boom. Maybe you were around back then maybe you weren't i mean you think the moves in 2020 were insane. I mean back then i mean you'd have stocks that would just every day gap up hundreds of percent run thousands of percent.

It wasn't the fact that people were over trading. It was because people just didn't have a goal didn't have expectations you know oh i'm up 1000. On a stock and i'm not gonna sell i'm gonna hold for or. 1000 i'm up 1000 on a stock and i'm not gonna sell i'm gonna hold for months or years as it trends lower oh i'm.

Up 900 i'm. Up 500 i.'m up 300 oh. Now i'm flat oh now i.'m down 20 now. I'm down 50 what does that have to do with over trading okay terrible risk management lack of having a plan which is talk about having a plan.

Something i teach every day in the steadytrade team. We'll also link that below it's the full time mentorship program that i run that will never you'll never listen you'll never be a bag holder. If you're in the steadytrade team unless you want to get screamed at by me. 500 times a day 3500.

Webinars in six years anyway check it out so the pdt came about okay we're gonna force people to that they can only close a position three times in a rolling five day period which again it's just it's what drives me nuts because the pdt i already gave the ronald reagan quote the other government regulation quote i love is the road to hell is paved with good intentions. Okay i like to think i'm probably wrong. But i like to think that whoever came up with this regulation had good intentions where's my rose colored glasses. I probably need those but anyway let's assume they had good intentions.

But you know the pdt forces people to overstay in stocks'cause. They don't want to use their last day. Trade or maybe they're out of day trades. They use all three and now they're like oh i can't exit this position or my broker's gonna lock my account'cause that's what'll happen first time you do it they'll lock your account for 90 days now you're stuck just terrible terrible.

Terrible and we see this just happen and happen again one of the greatest things about the stock market. It is a free market. And there should be in my opinion and again this is where my i might get in trouble. There should be as little regulation as possible okay let the market fix inefficiencies okay.

And yes. I'm a huge ayn rand fan. Yes. I'm a huge free markets.

Guy. And listen. There is a place for government intervention. Somebody needs to take care of the roads somebody needs to enforce the laws.

Somebody needs to have a police force to keep people from stealing my property or murdering. Me or whatever okay. There are places for that. But we have seen it and seen it especially in the 20th century and into the 21st where government never gets less i mean never gets smaller.

There's never less laws. There's never less regulations. There's always more that just compound. The problems and the mistakes.

And again you could say well tim oh. The free market well if you do that then the greedy capitalists will just blow everything up look at the housing crisis. Listen. The housing crisis was mostly created by terrible government policies.

Okay the housing crisis allowed the banks to borrow money at ridiculously cheap rates and then lend it out and then get backstopped by the gses et cetera okay they made and again. I'm not ensconcing the banks for the housing crisis in 2007 2008. But most of it would've never happened if not for these terrible government policies. So the point.

I'm trying to make is you have to i mean you have to trade within the parameters of the regulations. I mean. It is what it is but oddly enough one of the great examples like literally today the chips act c h. I p s.

Is passing and then you look at these government elected officials that are trading on this. Information. Nancy pelosi. There are congressmen congresswomen.

Congresspersons. Buying. Stocks like nvidia. And these semiconductor stocks days before these decisions are being made and there's no regulation.

There that's something you'll see me complain about congresspeople. I joke about my 2024 run where i'm gonna run so that i can do what congress does legally insider trade that's the crazy thing people will get all mad when these congress people are trading based on privileged information. It's legal. Okay who allows it to be legal well we allow it to be legal because we don't push our congresspeople.

Our senators our elected officials to regulate themselves. But yet they will regulate us they'll listen i'm sure nobody in congress is constrained by the pdt.'cause remember the pdt is only for accounts less than. 25000 i have a feeling they all got more than 25000. In their accounts.

So we allow them to regulate us or you you know maybe you're under the pdt or any of these other regulations. But yet they aren't subjected to them that's on us. Okay. We allow that to happen so my point is at the end of the day.

I think there should always be less regulation and if there is regulation. It should be in the right place. I don't think members of congress should be able to trade well listen i love trading let'em trade. But they should not be able to trade on privileged information.

Okay. If you know there is a bill coming out that's gonna help evs or help semiconductors. If you're in those discussions. You should be restricted from trading stocks in that sector.

Okay if you're not in any electric vehicle meetings and you wanna buy some tesla so be it. But if you're in electric vehicle meetings or talking about subsidies. You should be recused recused is not prevented from acting on that i mean. That's the way it should be i mean we know that regulations move stocks that's why they do what they do okay.

I have a feeling that they wouldn't trade. They're not buying berkshire hathaway'cause. They know there's no regulations coming that are gonna affect that stock so there you go my friends. My thing is vote okay and if you think it's bs that you're constrained by government regulations.

Yet they aren't well maybe you should get to the booth and vote that being said bohen 2024. Listen. If it's legal i promise to do everything legal when i am in office. If it's legal to insider trade bah.

I guess i'll insider trade. But it's up to you you got two years two years strike it down and then i'll work to remove the pdt. Too actually i mean all joking aside. If i get elected it won't happen'cause remember nobody in congress.

There's 470 other people none of them care about the little guy. I'll fight for the little guy and i'll do my best to get the pdt restriction. Waived okay. I'll do that for you click like on this video and i'll go to bat for you on the pdt.

All right have a great day. Everyone and again check out the steadytrade team below. We talk about everything you know we go over how to manage the pdt. We go over everything involved in trading.

We'd love to work with you.