posted
This morning I had positions in two stocks that I expect movement from fairly soon. Then I tried flipping one to lower my average and pick up some shares. This is the second time I've done this, first time worked beautifully. But this time I misjudged and the share price went up and stayed up. So I put my money in the other stock (now I'm all in, I like the stock but it's an uncomfortable position).
My question is, if the stock I'm in outpaces the stock I bailed on over the next one or two trading days, can I sell off some shares and buy back into the other stock?
More exactly, do they follow a "first in/first out" rule so that the funds are immediately available for further trading, or do they follow a "last in/first out" rule where I have to wait the three days to reinvest?
Thanks to everyone for your help. Here and in all the other places in pinky land where confusion reigns.
-------------------- Me Trade Pretty One Day. Posts: 815 | From: NYC | Registered: May 2006
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posted
cash account? three days to settle...some allow you to buy again, but not sell with unsettled funds. Some give you a warning, but allow it anyway--but you prolly will have to deposit more funds to cover, or they'll liquidate a position to cover. Best to ask the specific broker for that account...
posted
..."More exactly, do they follow a "first in/first out" rule so that the funds are immediately available for further trading, or do they follow a "last in/first out" rule where I have to wait the three days to reinvest?..."
If I understand what you are asking...is...you had stock already in XYZ...you sold a different stock and bought more of XYZ...you want to know if you can sell your "original" purchase of XYZ to get back in the other stock...
The answer should be yes...I am not sure what broker you are using..but most allow you to sell the "lots" that you bought...at different times...
GLTY!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards! Posts: 8890 | Registered: Jan 2006
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posted
Thank you. I was finding it hard to express the problem clearly, but you hit on it 10of13--I've bought into XYZ four times over the last month, most recently Friday--so the last trade hasn't settled yet but the earlier ones have.
Before I sold, I wanted some reassurance that I wouldn't be selling Friday's shares. I have an Ameritrade cash account and they will not make the money from last Friday's purchase available for nonmarginable stocks until this Thursday.
-------------------- Me Trade Pretty One Day. Posts: 815 | From: NYC | Registered: May 2006
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Kermit...Have you spoke to Ameritrade? I do not use them...but the other 2 brokers that I use.. There is NO TIME period or settlement time when you PURCHASE the stock...ONLY AFTER YOU SELL...(SETTLED FUNDS...not settled purchases...)
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...
I hope that clarifies...GLTY!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards! Posts: 8890 | Registered: Jan 2006
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