posted
A margin account only requires $2,000-5,000 in your stock account with most discount brokers( with $25,000..they let you trade 3x per week....so you don't have wait for settlement on all trades...Only requires signing a Margin Agreement..and with stocks over a certain $$ amount you can borrow money against your settled funds ..up to 100% if the stock is a certain price level....( and this<borrowing to buy> excludes penny stocks)....but nonetheless you can trade 3X per week which will allow many of you to buy or sell ...maximizing your profit opportunities...and gap your losses.....
If you have $25,000+ or more in account value(stock and cash) you can be a true day trade w/ some discount brokers.......and buy and sell
Have A Great Weekend to All !!!!
***Next Week RSHN and CWFG..... and day trade the hell out of USXP *****due your homework****
Posts: 1551 | Registered: Feb 2006
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posted
Do brokerages allow me to open seperate accounts, all under my name? This would allow me more flexibility to day trade without haveing to wait for settled funds all of the time. What is the penalty for selling unsettled stocks before the funds are settled?
-------------------- Thanks Matto. Thanks Juice. Posts: 2945 | From: USA | Registered: Feb 2006
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Funds settle not stocks. If you buy a stock you own it, normally funds will be withheld by the broker automagically when you sell a stock. If you sell something on the same day you bought it, you can be penalized via a day trader call which will cost you some cash and at worst freeze your account for a given window of time.
-------------------- Well done is better than well said. Ben Franklin Posts: 718 | From: Bay Area, CA | Registered: Aug 2005
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Heck if I split my money six ways that would leave about $1 per account! I just have trouble keeping my money separated. But heck I would confuse the accounts too! No wonder I can't make any money!!! Thanks for the info rkh and advice ohio trader!
-------------------- Thanks Matto. Thanks Juice. Posts: 2945 | From: USA | Registered: Feb 2006
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Risk tolerance varies amongst each of us so read up on Marginal Accounts first.
Found this also:
Margin Accounts
A margin account uses securities as collateral for a loan to buy additional securities. A margin account can also be used as collateral against a personal loan.
A margin account is only appropriate for investors with high levels of risk tolerance, as the value of the securities in the account may fluctuate widely with business conditions. If the value of the securities in the account falls below a predetermined level, the account may be called and you may be liable for paying off any outstanding liabilities.
Posts: 1236 | From: The Bluegrass State | Registered: Sep 2005
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I know just enough about margins to know I better not take that risk yet. I'm too green. For others with more experience than I it may be the way to go. Good luck to all.
-------------------- Thanks Matto. Thanks Juice. Posts: 2945 | From: USA | Registered: Feb 2006
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posted
Also, with Scottrade, you can link accounts together so that if you open up to one, you'll see the details of them all.
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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I talked with a Scottrade broker today and said that with the margin account or the 25,000 you don't have to worry about settled funds. I think you're right, Ohio-trader...I will only have to deposit a few more funds - and I don't have to use them. I don't think there is any way I can trade right now to EITHER maximize my gains OR minimize my losses. If I need to sell, I need to sell!
thanks for the post!
Posts: 18 | Registered: Feb 2006
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All of this sounds real nice but, if you do not have experience with trading you can also lose your shirt. AS WITH ANY KIND OF TRADING. ALSO.....You CAN NOT (in a margin account) Daytrade more than *3* times over a five day (business day) period. There are also margin calls to deal with..
It is nice to buy a stock and sell it the next day......Not having to worry about funds settling. Daytrading accounts are not all they seem to be as well. Once you are considered a "Pattern Day Trader" It can get quite messy in your account, unless you know what you are doing.
Do your homework on all of these before you jump into anything...
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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Yep, thanks Lil, I was going to post about this.
Although you can "day trade" as much as you want IF you have 25K in your account.
I'm actually a patterned day trader, from flipping the same stock too many times. Now when I sell, my funds don't clear til tomorrow UNLESS I flip it the same day. Hence me having 3 accounts, LOL
Posts: 1632 | From: NJ | Registered: Nov 2005
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posted
I have read a lot of books about stock trading. My conclusion is: staying away from margin account -- it could kill you. Trading low-priced stocks at 52-week low, under the MMs' accumulation is the best form of margin.
Posts: 3228 | From: Michigan | Registered: Aug 2005
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FOR NEWBIES LIKE MYSELF I am going to post information for any newbies such as myself. I am doing this so that I can, for once, hopefully help maybe one person in return for all of the help I have received here. Let's say I buy into stock ABC on Monday with settled funds. I decide to sell ABC on Tuesday, making the funds I put into ABC "unsettled" until Friday open. ButI decide to invest these same unsettled funds in XYZ stock on Wednesday. I am stuck in XYZ until the funds settle at Monday open. This is how basic trading works. If everybody knows this already than it won't hurt newbies such as myself to read it again.
And if I am incorrect please let me know and I will correct the post.
-------------------- Thanks Matto. Thanks Juice. Posts: 2945 | From: USA | Registered: Feb 2006
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quote:Originally posted by roozers42: I talked with a Scottrade broker today and said that with the margin account or the 25,000 you don't have to worry about settled funds. I think you're right, Ohio-trader...I will only have to deposit a few more funds - and I don't have to use them. I don't think there is any way I can trade right now to EITHER maximize my gains OR minimize my losses. If I need to sell, I need to sell!
thanks for the post!
wait, are you saying that if a Scottrade account, even an IRA, is worth over $25,000 then the 3 day settlement no longer applies?
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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lol.. kinda irresponsible recommending a margin account for penny stocks especially if a new investor happened to buy into the thought. Margin accounts are for more experienced investors who understand what they are doing and like to take large risks on less risky stocks. Taking such a large risk on already risky penny stocks is almost stupid.. You are betting money you dont have.. if you do have it then you dont need a margin account. Remember this board is for stocks under .10.
-------------------- All men's gains are the fruit of venturing.
~Herodotus Posts: 339 | From: Southern California | Registered: Aug 2005
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quote:Originally posted by Johnwayne: FOR NEWBIES LIKE MYSELF I am going to post information for any newbies such as myself. I am doing this so that I can, for once, hopefully help maybe one person in return for all of the help I have received here. Let's say I buy into stock ABC on Monday with settled funds. I decide to sell ABC on Tuesday, making the funds I put into ABC "unsettled" until Friday open. ButI decide to invest these same unsettled funds in XYZ stock on Wednesday. I am stuck in XYZ until the funds settle at Monday open. This is how basic trading works. If everybody knows this already than it won't hurt newbies such as myself to read it again.
And if I am incorrect please let me know and I will correct the post.
I think you are incorrect. If you bought ABC on Monday and sold ABC on Tues. you still settle on that sale on Fri. no matter if you buy another stock or not. But if you buy XYZ in the mean time you can't sell it until ABC has settled on Fri. At least that's what ETrade has done with me.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from? Posts: 441 | From: Vulcan | Registered: Feb 2006
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quote:Originally posted by lilpennypincher: Yes, You now have to allow the XYZ to settle. Margin is the best way to go for trading one day to the next.
DON'T USE YOUR MARGIN. Just use the money you have in your account.
excellent post--hope folks are paying attention...
posted
You can buy on unsettled funds but you can't sell that purchase till you have actually paid for the shares, which happens 3 days after the 1st stock sale.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from? Posts: 441 | From: Vulcan | Registered: Feb 2006
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quote:Originally posted by lilpennypincher: Yes, You now have to allow the XYZ to settle. Margin is the best way to go for trading one day to the next.
DON'T USE YOUR MARGIN. Just use the money you have in your account.
Here's the thing. I have $10,000 in my IRA account right now and trade cash only, so the rule still applies for me. I'm hoping that my account will get to $25,000 within a couple of months.
So you're saying that when my account reaches $25,000, the funds won't have to settle, but the XYZ will? By the XYZ settling, what exactly do you mean and how long will it take? How long will it then take for me to sell another security I bought with those funds?
I'm just figuring this out for my own benefit when my account gets high enough. Sorry for all of the questions.
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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posted
I used 2K of my own money to open a Scottrade account (not on margin). I have never had an issue with unsettled funds and have made multiple trades in one day. I'm not a daytrader per se but I've not encountered any problems of any kind thus far. Pennies are a gamble... would you borrow 50K from the bank and then go to Vegas to play blackjack?
-------------------- trashed and scattered again Posts: 629 | From: Boston | Registered: Jan 2006
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quote:Originally posted by OhhhYeah: PS.. on scottrade I always reinvest unsettles funds with no issue
Yeah, any Scottrade user, including myself, can do that. It's a great advantage.
Posts: 340 | From: Pleasanton, CA | Registered: Jan 2006
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pay up - so the date of the second purchase in xyz is irrelevant? God help me if I ever got involved in something as complex as margin trading!!!!
-------------------- Thanks Matto. Thanks Juice. Posts: 2945 | From: USA | Registered: Feb 2006
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It's not the brokerage firm that you use it's a trade rule that applies no matter what.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from? Posts: 441 | From: Vulcan | Registered: Feb 2006
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Only requires signing a Margin Agreement..and with stocks over a certain $$ amount you can borrow money against your settled funds ..up to 100% if the stock is a certain price level....( and this<borrowing to buy> excludes penny stocks)....
you cannot borrow on margin for penny stocks !!
Posts: 1551 | Registered: Feb 2006
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I'm new at this too and I think we try to rush things. Those who make several trades a day have built up funds over time. So they can do this. Be patient and learn. Get a little gain at a time and soon you will build up your account. Some of these stocks you may need to hold for several months before it goes up. I'm sure there are not as many people on here making the big money everyday as you think. But then some days they make thousands.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from? Posts: 441 | From: Vulcan | Registered: Feb 2006
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quote:Originally posted by pay up: It's not the brokerage firm that you use it's a trade rule that applies no matter what.
Correct
Now if you purchase ABC on Monday with CASH, You sell it on tues and pruchase XYZ. YOU MUST wait 3 days for those funds to settle before you can sell it. NO IF ANDS OR BUTS......In a cash account.
I would never suggest Using your margin Priviliges for starting out EVER!
Just use the margin FOR buying and selling the next day.
and if you are using unsettled funds and buying and selling...YOU WILL GET CAUGHT! They will slap your hand the first time and then suspend your account. IT will happen.
Please, everyone Do your homework on this...It's not a game. Might play like one but it's NOT!
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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Jelly, you tell em. I totally agree with you. Remember, the one that laughs last laughs the hardest.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from? Posts: 441 | From: Vulcan | Registered: Feb 2006
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If you have more than 25k in equity in your account and you sign a margin agreement. You can buy and sell at will. I personally do about 10 to 25 daytrades everyday.
Posts: 424 | Registered: Apr 2005
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