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Non-Tech : Invest / LTD

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To: Alski who wrote (11567)	1/21/2000 6:58:00 AM
From: Thean	Read Replies (2) of 14427

Steve, I forgot Alski also has CPA blood in his family but what he wrote explained a lot of the SEC trading restriction and rules, in particular the daytrading ones. I for one was taught these rules the hard way - by Waterhouse AFTER I broke these rules. Once I overbought what my account permits in an IRA account (by accident and by only about $2) and I immediately send in $2000 for the year's contribution. They called me and put my account in 3 months restriction jail - meaning I lose my webtrading previlege and had to call the live broker (and pay the higher fee) each and everytime I want to make trades. This was painful. They said this was an SEC rule so even if I move my account this restriction would go with me. Didn't challenge to see if this is true however. Another time (multiple times) in my taxable account I overused my daytrading buying power (selling and rebuying and reselling the same stock within the same day) and was put one 1 month jail each time. I'm not sure if trading option (like rolling over) may also count toward the daily buying power limit. But the reality is there are more rules than we retail investors know. That's why they still need a licence to be a broker.

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