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Author Topic: Day/Swing trader question
itsjinx
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I've been doing alot of reading up on day trading and swing trading. what i am most interested in is buying a stock thats coming up and selling it when i have made my desired profit. I've heard people say that unless you have a special day trade account, that i can't sell my stock until the day after i bought it.

My questions are:

1. Is that true that i can't buy a stock and sell it in the same day even if i have made my desired 15% profit?

2. If thats the case, is there any way to able to buy the stock and sell it in the same day without having the 25,000 in my account?

3. I'm using E-Trade for flipping penny stocks. Do they completely disable the buy and sell of a stock in the same day or do they have automatic flags on your account if you do that? if so, what happens when they flag you?

4. I've heard that you can set automatic stop trades if your stock falls below a set amount. Does the stock automatically get put back on the market once it reaches this? and if so, wouldn't that be considered a day trade if i bought it earlier that day and am now selling it? I just have a hard time believing that if i bought a stock early in the day and its falling big time, that i can't get rid of the stock just because its the same day and I have to watch it keep falling until the next day when i can sell it. hopefully thats not the case!

any help is GREATLY appreciated!

Posts: 85 | From: Michigan | Registered: Nov 2006  |  IP: Logged | Report this post to a Moderator
Mysticobra96
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1/2. for what your doing get a margin acc and you can daytrade 3 times in 5 days w/o having 25k in your acc.

3. i have etrade and you will get flagged for flipping. the first time is a warning and you have to talk to the rep and tell them you didn't know and then they will take it off.

4. you can put a stop order on stocks but it must be $.10 below the current price so its impossible w/alot of pennies. a word of advice, if you don't want to lose the money your playing w/and can't handle losing it don't play w/pennies at all. you will have a hard time sleeping at night or walking away from the comp. (trust me on this!) you can buy a stock in the morning, sell it if its falling. you just can't buy again til your funds settle. so usually you could only do that 1-2 times a week. i recommened talking to the people at etrade they are very helpful.

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itsjinx
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thanks for your response. so you said i could buy in the morning and sell in the afternoon if it was falling but i can't buy again until my funds settle. what does 'settle' mean? is it only daytrading if i buy and sell the same stock over and over again in the same day? or can i buy and sell the same stock once in a day and do that with many stocks throughout the day?
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Mysticobra96
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Settle is the time it takes for brokers to finish up your transaction. I compare it to depositing a check in the bank, you have to wait till the check clears before you can spend the money. I'm not sure why it takes so long but etrade usually takes about 3 days.

Daytrading is trading any stock full circle in 1 day. If you wanted you could buy at the eod and sell the next morning. You still are going to have to wait for the funds to settle if you have a cash account.

I highly recommend getting a margin acc. if your an active trader. I have one and I just don't use the margin money, but that way I can buy/sell and buy again w/o worrying about settling.

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itsjinx
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thanks for your response. use say you use margin while your funds are settling but doesn't that mean you are paying interest on that which lessen alot of gains?
Posts: 85 | From: Michigan | Registered: Nov 2006  |  IP: Logged | Report this post to a Moderator
Mysticobra96
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I don't actually use the margin money. I only use what I have but by having a margin acc they let you buy w/cash before your funds settle.
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Machiavelli
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First you should not be trading if you do not know what "settle funds" is , how a stop/loss works, and other issues that i find disturbing in your posts lol Basically you do not seem to know the basics of trading and i recommend you read a book or two such as the two below i highly recommend (btw if I were you I would switch brokers from E*Trade to Choicetrade.com, check out their site you won't regret it;E*Trade seems to have too many restrictions especially with stop/losses):

A Beginners Guide to Short Term Trading by Toni Turner

A Beginners Guide to Daytrading Online by Toni Turner

www.toniturner.com

--------------------
Let the world change you... And you can change the world.

Ernesto "Che" Guevara de la Serna

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T e x
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good Lord...

1) yes, you can buy & sell in same day--just don't keep doing that: learn "pattern day trader" rules

2) see 1

3) E-trade? ask E-trade...read that thingee you signed...lol

4) Choicetrade offers stop-limit orders on pennies--not aware of others who do, but they may be out there. Please post 'em if you find 'em.

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Nashoba Holba Chepulechi
Adventures in microcapitalism...

Posts: 21062 | From: Fort Worth | Registered: Apr 2005  |  IP: Logged | Report this post to a Moderator
   

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