Some Guns Will Be Holstered Under New Margin Rules for Daytraders

Daytraders may or may not have exacerbated the market's decline over the past few years with a lot of trigger-happy decisions. But partly because of that perception, life is about to get harder for them.

On Aug. 27, the New York Stock Exchange , and on Sept. 28, the National Association of Securities Dealers will raise the minimum account balance for "pattern" daytraders who want to use borrowed money to buy stock. The new rules require at least $25,000, considerably higher than the current $2,000.

"After researching the trading business extensively, investing large sums of personal capital in computer systems and a comprehensive course of classroom training, I am just starting my career as a trader," wrote Christopher Noone in a comment appended to the Securities and Exchange Commission's announcement of the new minimum. "The passage of this rule would effectively put me out of business." ...