Thought we'd start another one...feel free to add...GLTA !
#1 RULE! Protect your Capital
#2 Rule Don't fall for the hype on these boards!
Some simple and Basic questions:
What do these letters mean? DD=due diligence (Research) MM=Market Maker (definition http://www.sec.gov/answers/mktmaker.htm ) EOD=End Of Day EOW=End Of Week HOD=High of Day PPS=Price Per Share O/S=Outstanding Shares POS=Piece of "Poo Poo" IMHO=In My Humble(Honest) Opinion LMAO=laugh My A** off L2's=Level 2's
How is one "flagged" a daytrader? To avoid being flagged a daytrader, you can not sell and trade the same stock more than 3x's in a 5 day period. Buy "XYZ" and sell it the same day=not a day trader. Buy "XYZ" on Monday and sell it on Tuesday=not a daytrader. Buy AND sell "XYZ" more than 3x in a 5 day period= Day trader. You can buy and sell different stocks...just not the same one.
What are "free" shares? Many People will sell a stock once it has "reached" an increase where they can sell to "get back" their original investment and then continue to let the rest of the shares "ride", these are "free shares" (ones that the gain of the pps has "covered") All of these, once sold, would be complete profit.
What are settled funds? You open your account with cash, those are "settled funds", You buy stock XYZ , you sell XYZ to purchase a different stock, It will take 3 business days for those funds to become "settled". Some brokers will let you purchase stocks with unsettled funds but you can not sell that newly purchased stock for the 3 days, The sell of a stock is what needs to "settle" not the purchase of a stock. Think of it as a check clearing your bank after you have deposited it.
Example: I have $200 in a cash account...I buy 200 shares of XYZ on Monday...I can sell those shares ANYTIME after my purchase...in 5 minutes or 5 months...it doesn't matter...I dont have to wait for anything...However, this is where the "settlement time" comes in, although allot of brokers will let you buy with the unsettled funds from the sale of XYZ...I CAN NOT SELL..the new stock that I purchased...(here it is) UNTIL the settlement date...usually 3 business days...
The settlement date applies to the SELL of a stock...NOT the purchase of the stock...
Must have book to read is "a beginners guide to day trading on line" by Toni Turner www.toniturner.com
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Lots of info in these threads ![[Smile]](smile.gif)
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