Daytrading

NEW -> Contingent Buyer Assistance Program
Move to a margin type account.  It will eliminate these kind of limitations.  You don't have to use margin .. just to avoid these weird rules.
 
ps9 said:
So tried to unload my AXP positions today and got warned by my broker they might flag my account for 'freeriding' and report to SEC.  Didn't know what it meant so read up on it here:
http://www.sec.gov/investor/alerts/cashaccounts.pdf

Still puzzled, I thought I have enough cash positions to cover my trades of AXP.  Ended up not selling :(
Click to expand...

what broker are you using?  even if you are on a cash account, the system would hold funds for 3 days before letting you use them to trade to avoid any freeriding violations.  if you had margin, that 3 day hold is gone but even without margin, its really hard to get hit with freeriding with a tech based trading platform.  also why would a sell order get flagged?  its buy orders that get flagged as you are technically using money you don't have to buy the stock
 
rkp said:
ps9 said:
So tried to unload my AXP positions today and got warned by my broker they might flag my account for 'freeriding' and report to SEC.  Didn't know what it meant so read up on it here:
http://www.sec.gov/investor/alerts/cashaccounts.pdf

Still puzzled, I thought I have enough cash positions to cover my trades of AXP.  Ended up not selling :(
Click to expand...

what broker are you using?  even if you are on a cash account, the system would hold funds for 3 days before letting you use them to trade to avoid any freeriding violations.  if you had margin, that 3 day hold is gone but even without margin, its really hard to get hit with freeriding with a tech based trading platform.  also why would a sell order get flagged?  its buy orders that get flagged as you are technically using money you don't have to buy the stock
Click to expand...

sharebuilder by capital one, here's their explanation:

What is freeriding?
Regulation T of the Federal Reserve Board (FRB) requires that stock purchased in a cash account must be paid for in full before it is sold. A failure to comply with these rules is known as freeriding.
We'll try to break down what this all means without putting you to sleep with industry jargon:
When you sell a security, funds are not officially transferred between the buyer and seller until three business days following the sale of Stocks or ETFs and one business day for mutual funds or options. This time is known as the settlement period. (Still awake? Good.)
During the settlement period, we allow you to use these proceeds to fund the purchase of a new security.
If, however, you choose to sell the second security prior to the settlement date of the first security, you have then bought and sold using unsettled funds. This is considered a "credit" transaction and is prohibited by Regulation T of the Federal Reserve Board.
The Federal Reserve Board requires that we place a 90-day settled-funds-only freeze on every cash account that is in violation. Accounts with this restriction are unable to invest funds from stock sales until the sales settle.
We understand that this type of regulation is complex (and exciting). Learn more about Regulation T.
Identifying Potential Payment Problems:
One way to avoid freeriding is by looking at the trades you're thinking about placing the way we do when we monitor trades for freeriding.
Have at least three market days passed since you purchased the stock? Your trade confirmation shows the settlement date.
If you purchased a stock with the proceeds from a prior sale, verify that the settlement date for the original shares you sold has passed prior to selling it.
If you have not satisfied one of the two requirements listed above, you may simply deposit sufficient additional funds to cover the purchase of the shares that you intend to sell.
Tip: Bank-only holidays such as Columbus Day and Veterans Day are not considered settlement days. To view a list of all market holidays, see our Holiday and Trading Calendar.

So this makes more sense, a sell order of stocks bought with unsettled funds is a no-no.  Already put in my application for margin borrowing.
 
I believe you just need a pattern day trade account that GH mentioned.

I think it's just extra form you have to fill out and fax back to your brokerage.
 
toady13 said:
I believe you just need a pattern day trade account that GH mentioned.

I think it's just extra form you have to fill out and fax back to your brokerage.
Click to expand...

Once you have a margin account you need to make 4 day trades in 5 days so your account gets designated as a pattern day trading account. Then you can really stretch your cash to make some huge day trades
 
qwerty said:
toady13 said:
I believe you just need a pattern day trade account that GH mentioned.

I think it's just extra form you have to fill out and fax back to your brokerage.
Click to expand...

Once you have a margin account you need to make 4 day trades in 5 days so your account gets designated as a pattern day trading account. Then you can really stretch your cash to make some huge day trades
Click to expand...
Yup, I sold 100 apple out of the money puts right before they reported earnings for a tidy profit.  Margin Account with naked option trading rights FTW!
 
ps9 said:
Got my margin account set up, PBR taking a hit today, still a buy?
Click to expand...

Yes, I loaded up in my account and inlaws account at sub 6.30

Nothing fundamentally changed. They got downgraded because of the lack of audited q3 financials which everyone has known for months. They are not going to access debt market in calendar 2015 anyway.  They have till April 30 to file their 20-f ( 10k equivalent). If they do that on time you will see a big pop as it puts this mess behind them
 
ps9 said:
Got my margin account set up, PBR taking a hit today, still a buy?
Click to expand...

did you end up getting back in on PBR? closed at 6.49, you could have made a quick 2K today.
 
toady13 said:
I should post my trades. Do the opposite of whatever I do and you are guarenteed to win.
Click to expand...

just let us know when you are going all in on a trade and what the trade is so we know what to do :-)
 
Yesterday's Dilbert reminded me of ps9:

2210acf085c90132c101005056a9545d


You can see the whole series here:
http://dilbert.com/series/62-Boss-gives-Asok-investment-advice
 
ps9 said:
Is it me or does PBR have a lot of after market movement?
Click to expand...

Yeah it has more than most. But it has one of the highest volumes on the nyse and is very volatile so it's expected
 
You must log in or register to reply here.
Back
Top