Allstocks.com's Bulletin Board: Please help me my account is locked!!

This is topic Please help me my account is locked!! in forum General Investing Topics at Allstocks.com's Bulletin Board.

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Posted by vic102482 on :

Bleh I got slapped with a 24hr hold on my account because Im not authorized for day trading. I totally didnt see that one coming, it ended up working out for me in the long run though

Does anyone know what the rules and requirements are for day trading? I see people saying that in Ameritrade their funds are ready as soon as they make the sale, but then I see it is federal law for you to have an account over 25K in equity to invest.

If thats what I have to do in order to day trade thats fine, but Im not sure of the rules and regulations. I thought there were none but, buy sell and report earnings to IRS.

I see stuff about pattern day trading and stuff. Does someone have a document or can spell out in black and what what the rules are on day trading?

Why do you need the 25K? Why is Troweprice telling me 24 hours and scottrade telling me 3 days?

I have traded with trowe and I can confirm from experience there is a 24 hour lock before the account is "settled".

I am relativly new to trading all together, and I just found out there are rules for day trading today, so something 101 ish would be nice .

Posted by vic102482 on :

Also with ameritrade on a cash account (no margin) what can I do to get faster trades, should I open a margin account and still use cash??

Should I not open a margin at all and just "hope" that ameritrade makes the funds available to me?

Its quite unfair to force me to stay in a stock because Im not a big baller.

Posted by VNGNTN1 on :

VIC
Rules are made by Companys Based on business strategy which covers government regulations.
I have noticed that people on this board complain(whine) a lot over things that though true, they have no control over. This I consider to be a negative attitude, Better to accept current conditions until research offers new opportunity. This concept applies to brokers & Market makers as well as individual stocks.
Otherwise stand in a lane on a freeway and see what happens.
VAN

Posted by vic102482 on :

Thanks, but as you can see I have lots of questions and no answers. I call trowe scottrade and ameritrade and I get all different answers.

I just keep trying different sources until I can get some consistnat answers.

[This message has been edited by vic102482 (edited March 26, 2004).]

Posted by Veda on :

quote:
Originally posted by vic102482:
Bleh I got slapped with a 24hr hold on my account because Im not authorized for day trading. I totally didnt see that one coming, it ended up working out for me in the long run though .
Does anyone know what the rules and requirements are for day trading? I see people saying that in Ameritrade their funds are ready as soon as they make the sale, but then I see it is federal law for you to have an account over 25K in equity to invest.
If thats what I have to do in order to day trade thats fine, but Im not sure of the rules and regulations. I thought there were none but, buy sell and report earnings to IRS.
I see stuff about pattern day trading and stuff. Does someone have a document or can spell out in black and what what the rules are on day trading?
Why do you need the 25K? Why is Troweprice telling me 24 hours and scottrade telling me 3 days?
I have traded with trowe and I can confirm from experience there is a 24 hour lock before the account is "settled".
I am relativly new to trading all together, and I just found out there are rules for day trading today, so something 101 ish would be nice .

With Ameritrade, you have to have 4 round trips in 5 business days to be considered a day trader.

Day trader has margin account

[This message has been edited by Veda (edited March 27, 2004).]

Posted by Veda on :

quote:
Originally posted by vic102482:
Bleh I got slapped with a 24hr hold on my account because Im not authorized for day trading. I totally didnt see that one coming, it ended up working out for me in the long run though .
Does anyone know what the rules and requirements are for day trading? I see people saying that in Ameritrade their funds are ready as soon as they make the sale, but then I see it is federal law for you to have an account over 25K in equity to invest.
If thats what I have to do in order to day trade thats fine, but Im not sure of the rules and regulations. I thought there were none but, buy sell and report earnings to IRS.
I see stuff about pattern day trading and stuff. Does someone have a document or can spell out in black and what what the rules are on day trading?
Why do you need the 25K? Why is Troweprice telling me 24 hours and scottrade telling me 3 days?
I have traded with trowe and I can confirm from experience there is a 24 hour lock before the account is "settled".
I am relativly new to trading all together, and I just found out there are rules for day trading today, so something 101 ish would be nice .

Ameritrade is suppose to email you regarding your status of day trading.

It's my understand no trader has access to funds immediately. You must wait for the funds to settle and it depends on your transaction as to the number of day. anywhere from 3-5 days

[This message has been edited by Veda (edited March 27, 2004).]

Posted by Machiavelli on :

sounds like you dont know much about trading in particular.. maybe you should read a book first before diving in head first.. ill recommend book im reading... How to get Started in Electronic Daytrading by David S. Nassar ... hope it helps...

Posted by Zeker on :

I think Veda hit the nail right on the head: when you sell your position in a stock, the impending equity from the sale is credited to your account by your broker pending the official settlement, but that does not mean that the equity is liquid. You can use this equity to purchase another stock, so long as you don't sell the second stock before the first stock settles- doing so is considered a 'free ride': although the equity is yours, you must wait for the order to officially settle (become liquid). Otherwise, its a little like painting your impending new house purple before you officially close on it- your broker knows the money is coming in, and so they credit it to your account, allowing you to use it to make a purchase or purchases up to the impending equity value of the sale. The best way to avoid this problem would be to either set up a margin account, or to keep some cash (liquidity)on hand in your account, in order to not have to base one trade on the impending equity of another.
Hope this helps, and GLTA