I was looking into some day trading and noticed they limit you to 5 trades per week if your liquid assets are less than $25,000. Why are they keeping the small investors out of the market like that? Seems shady.
The limit is 5 day trades per week, not 5 trades per week.
Although it may not be obvious, day-trading creates certain risks for brokerages and exchanges as well as the individuals doing the trading.
The higher account requiremens reduce the risks for brokerages and exchanges. For more information see
http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003881.pdf
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