I was reading this article: [https://www.wsj.com/finance/stocks/what-to-know-about-the-demise-of-the-much-hated-pdt-trading-rule-0585c520?st=t4i6S2&reflink=desktopwebshare\_permalink](https://www.wsj.com/finance/stocks/what-to-know-about-the-demise-of-the-much-hated-pdt-trading-rule-0585c520?st=t4i6S2&reflink=desktopwebshare_permalink)
This quote stands out: "“Retail investors have proven they are smart, resourceful, and capable of managing their own exposure,” said Anthony Denier, U.S. chief executive of Webull."
I mean, that's obviously not true.
My sense is that a lot of people will get reckless, but I don't have any particular knowledge on how it might impact things. If there's a flood of new, amateur investors buying on margin, what will that do to spreads and the like?
Will it be noticeable at all?
This quote implies that maybe? "In a survey of more than 1,000 active retail traders commissioned by Tastytrade, an options brokerage, 43% of respondents said they had changed their behavior to avoid triggering the PDT rule." On the other hand, a bunch of sub-25k accounts probably can't move the needle much unless there are a lot of them.
I can see a scenario where these people lose a lot of money and the brokerages have to deal with the mess they make. I don't know how that would impact successful traders.