posted
The rules about PDT is VERY vague at best and there is a lot of conflicting interpretations of the 3 day trade limit (or is it 4?)
I use Choicetrade (cash account) and there is nothing regarding limitations in ther FAQ's. The only reference I could find was the 25K requirement for day trading when I signed up.
From what I have found I believe that a day trade would be defined as buying and selling the same stock within the same trading day. Is this correct? And this can only be done a certain amount of times (3 or 4) in a 5 day period (business days?) or within one trading week? So I could buy stocks in the afternoon and sell the next morning unlimited (provided I have availabe funds or the funds from my previous sale have settled)?
Does Choicetrade actively enforce this? Because there's nothing about it on their site.
Lastly, I don't quite understand the rules regarding the settling of funds. I buy a stock on Monday, sell it on Tuesday and I buy another stock with the funds from that sale. I can't sell that stock until Friday while I wait for the funds to settle?
That is my understanding but it is terribly confusing. I can buy a stock with unsettled funds but I can't sell that stock?
Say I bought a stock on Thursday and sold it on Friday. Have the funds settled by Monday or would it not be settled until Wednesday?
I'm sorry for all the questions but I want to make sure that I don't get into trouble with Choicetrade and I don't want to get stuck holding a stock that I can't sell when it is at the end of a run.
-------------------- All of my posts are based on my opinion. My opinions are based on the info available to me at any given point in time. Do your own DD and see if you concur.
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posted
I would suggest taking your cash and opening a margin account with that cash as your collateral. This will alleviate the problem of having your funds cleared before selling the new purchase. The day trading rules are still applicable however. I would have to research to find how many day trades you could do before you were a "day trader", ( I think it is 4 or more per week). I think 3 trades per week is acceptable without being labeled as a pattern daytrader.
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posted
ya know, choicetrade seems to not enforce it. For instance, ill buy a stock on monday, and sell that very same day. THe funds are available for me right away. Now, im able to buy and sell one more time (roundtrip) but thats it. And ill look on my account and my funds'll be ready to be used again the next day! Go figure!
-------------------- "I sell ice in the winter, i sell fire in hell, I AM A HUSTLA, BABY, i sell water to a well!"
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posted
choicetrade doesnt have a minimum! Also, its 5 dollars a trade, and at 10 dollars for round trip, you really cant beat that. Now, thats how it works for me, anyway. If you decide, hell if anyone wants to sign with choicetrade, lemme know as a referral we'll both benefit from it!
-------------------- "I sell ice in the winter, i sell fire in hell, I AM A HUSTLA, BABY, i sell water to a well!"
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quote:Originally posted by cbrf2: choicetrade doesnt have a minimum! Also, its 5 dollars a trade, and at 10 dollars for round trip, you really cant beat that. Now, thats how it works for me, anyway. If you decide, hell if anyone wants to sign with choicetrade, lemme know as a referral we'll both benefit from it!
funny sig... OK, I'll look into it, but prolly won't change/open a new acct till September. If ya wanna keep that on yer calendar, get back w me on the referal angle...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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posted
I have both Lowtrades and Choicetrade accounts and neither seems to be enforcing it. When I sell a stock, I find the cash in my account right after. Now, maybe in time they will do it differently, but they haven't so far. Currently, I pay only 2.50 a trade at Lowtrades....that will end with September, when I believe and I return to $5 a trade. The two brokers have quite parallel policies, with minor differences and I'd bet there are others out there that are similar.
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not too bad, cept 2 to 5...actually, being on the job is better than being at home during those hours...you're working so ya don't think about it
Get home? ya want that COOL... lol
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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Currently with TDwaterhouse, but i am finding that the commsions are makeing it impossible for me to even compete. E.g. i recently bought 10,000 shares of a stock at .014 thats a total of $140 but my comssion at Tdwaterhouse was $100.00 for a grand total of $240. If i want to sell then my commsion would be $100 again . I would have to sell my penny stock that i bought for .014 for .034 jst to break even. See my biggest problem. Thinking about moveing my account to Choice trade any thoughts as to them being any good.
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yes, choicetrade is a good company tp trade through. great customer service, speedy transactions, and at $5 a trade, cant really beat that. Do a search for it, and you'll find great recommendations
-------------------- "I sell ice in the winter, i sell fire in hell, I AM A HUSTLA, BABY, i sell water to a well!"
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posted
Polar: That's nuts. Don't ever to that again. Don't trade pennies unless its with Ameritrade, Choicetrade, LowTrade, etc... Watch out for the charges on high share orders...
-------------------- No one ever lost money taking a profit. Remember that.
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posted
polarbear, open online trading account in ameritrade, choice trade, lowtrade,etc. like hlniv says, dont use telephone order. upon phone order, tdwaterhouse, charlesswab specially, they used to charge $200.00 almost round trip trade. but other on-line brokers, they charge $22-35.00 only about phone orde per trade. for regular trade on line, if you do in ameritrade, only 10.99. also, if you have a lots of trades, they give special, $7.00 per trade. choicetrade/lowtrade $5.00 only. low commission is very helpful for otc bb/pink trade. do not worry about their security systems in every broker. now every broker has good systems.
quote:Originally posted by Polarbear17: Currently with TDwaterhouse, but i am finding that the commsions are makeing it impossible for me to even compete. E.g. i recently bought 10,000 shares of a stock at .014 thats a total of $140 but my comssion at Tdwaterhouse was $100.00 for a grand total of $240. If i want to sell then my commsion would be $100 again . I would have to sell my penny stock that i bought for .014 for .034 jst to break even. See my biggest problem. Thinking about moveing my account to Choice trade any thoughts as to them being any good.
polarbear, the *entire* point re online trading is to SLASH those ridiculous fees. THAT's the WHOLE POINT--join the e-world.
Now? you're away from your computer/wireless network/whatever blackberry-thinggeee you got in place? Ya, you can *always* call your broker on the phone and direct them as you will...but ya gotta quit those high commissions...imho...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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