It is funny, I just got busted Monday for flipping USXP. I traded four times Turning $3200 into $6000. BUT ETRADE caught me and put me on a 90 day restriction. I have a cash account.
So I guess I can buy a stock but can't sell it until the next day? Is that right? Or can I buy a stock,sell it same day,and then wait 3 days?
posted
I learned something new today. I have done the same thing several times and have not been "caught" yet from Scottrade. I never knew it was not allowed..
-------------------- All men's gains are the fruit of venturing.
quote:Originally posted by OhhhYeah: I learned something new today. I have done the same thing several times and have not been "caught" yet from Scottrade. I never knew it was not allowed..
What did you do? Did you have cash in your account?
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from?
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quote:Originally posted by Rich735: I have learned so much from you all.
It is funny, I just got busted Monday for flipping USXP. I traded four times Turning $3200 into $6000. BUT ETRADE caught me and put me on a 90 day restriction. I have a cash account.
So I guess I can buy a stock but can't sell it until the next day? Is that right? Or can I buy a stock,sell it same day,and then wait 3 days?
Thanks anyone!!
IN a CASH account. YOU MUST WAIT 3 DAYS for funds to settle.
Apply for margin if you want to flip. BUt then you can only DAYTRADE (buy and sell the same stock in ONE day) 3 times over a five (business day) period. You can buy a stock one day and sell it the next as many times as you'd like.
Now to answer the cash part AGAIN...
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!
Now, I'm going to play wheel of fortune with Jelly and make thousands..........LMAO
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run...
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posted
I'm pretty sure your second thought is correct.. buy a stock,sell it same day,and then wait 3 days. in a bit further detail, you can buy again the same day, but you can't sell what you bought until the first sale settles.. unless you have enough settled funds already to cover it..
guess it's time for you to open a new account, huh.. 90 days is like eternity here.
-------------------- Hindsight is 20:1. It's like printing money.
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posted
Rich, open another account even with the same company and transfer your funds over. The 90 day restriction will KILL you LOL.
Yes you cannot flip the same stock more than 3 or 4 times, unless you have 25K
You cannot flip a stock with unsettled funds.
You are in the boat that you can now buy a stock and sell it, but when you sell it, you can't use the funds til they clear.
Read the fine print everyone. There are alot of rules that are important. Anyone that has PM'ed me for help, that is one of the first things I tell them, the flip rules, daytrade rules, etc.
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posted
People, you cannot daytrade more than 3 or 4 times in a 5 business day period either. Read, read, read. (of course unless you have 25K)
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posted
Under the rules of NYSE and NASD, customers who are deemed "pattern day traders" must have at least $25,000 in their accounts and can only trade in margin accounts. For more information, you can read the NASD's Notice to Members and the New York Stock Exchange's Information Memo.
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posted
On February 27, 2001, the Securities and Exchange Commission (SEC) approved amendments to National Association of Securities Dealers, Inc. (NASD®) Rule 2520 relating to margin requirements for day traders (the "amendments"). The amendments become effective on September 28, 2001 and are substantially similar to amendments by the New York Stock Exchange (NYSE) to its margin rules
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This buying and setteling all depends on your having cash in your account or not. If you buy ABC and sell it, it doesn't settle for 3 days. If you have other case in your account and you buy another stock for less than that amount then you bought it with settled funds and can sell it whenever you want.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from?
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posted
i just got my choicetrade account set up.. i tried searching through all the old threads that had 'margin' in it, but couldn't find what i was looking for.. and also tried looking through choice's website..
anybody know the minimum to get a margin account through them? i definately wouldn't be trading on margin.. i just want to have the freedom to be able to have a buy-one-day, sell-next-day pattern and not be bothered by those pesky settling times.
-------------------- Hindsight is 20:1. It's like printing money.
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posted
I don't recommend margin accounts for anyone especially beginner's... it's a road to disaster for beginner's... margin calls are not fun... especially if you short stocks and such... but if you do open a margin account know what your getting into .. i rather stick to cash...
-------------------- Let the world change you... And you can change the world.
quote:Originally posted by whb11: i just got my choicetrade account set up.. i tried searching through all the old threads that had 'margin' in it, but couldn't find what i was looking for.. and also tried looking through choice's website..
anybody know the minimum to get a margin account through them? i definately wouldn't be trading on margin.. i just want to have the freedom to be able to have a buy-one-day, sell-next-day pattern and not be bothered by those pesky settling times.
I got this from the site:
Margin Accounts that do not engage in day trading: If you do not intend to engage in day trading, you may deposit as little as $2,000 initially.
Day Trading Accounts: There is a $25,000 initial minimum required to establish a ChoiceTrade account. In addition to the minimum, in order to open a ChoiceTrade account, your account must be approved as a margin account and you must have an annual income of at least $35,000 or a liquid net worth of at least $75,000. After your account is established, a $25,000 minimum account balance will also be required. Accounts that fall below the required minimum will be subject to certain restrictions, and additional funds may be required. In addition to these requirements, it is strongly recommended, but not required, that you have at least one year of online trading experience and at least one month of live trading experience on a direct access platform before opening a ChoiceTrade account.
-------------------- Let the world change you... And you can change the world.
posted
Thanks, Mach. I deposited 525.. Maybe I'll wait and see if I can grow my account up to that much, and then apply. Or, grow up my money till I have enough to make a 2,000 initial deposit on a new account.
I'm not planning on day trading, per se.. I just want the freedom to flip more often, which I think would be ok with them. No rush though, I don't mind taking my time. Just like to know my options. Thanks again!
-------------------- Hindsight is 20:1. It's like printing money.
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If you cannot buy pennies on margin, then it seems to me that much of the risk is diminished. If this is the case, I'd rather have an account that lets me day trade three times a week per stock rather than a regular cash account where I have to wait three days.
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posted
yes, flawed...you *are* describing a regular cash account, with which you may make 3 round trips in a rolling 5-day period (ie, *not* "that week*: it does *not* start over each Monday); furthermore, you will run into free-ride provisions if you sell a stock without settled funds to cover...
margin account lets you borrow from broker to avoid using unsettled funds.
I sincerely hope we craft an explanation that clears this up; then we can link to it...
anyone with remaining questions, please post em here...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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