Sure, I'll try. I was reluctant to get into it too deeply. My post was pretty long as it was. The first problem was with day trades I made on GNETand EPAY on 3/10. Biggest gains I ever made in short term trades and the basis for my joining SI and tipping the hat to your great board. A balance showed the day of the trade, but next day after balances are supposed to tallied over night, the balance due was "0." I called to pull some cash out and asked how much I owed from the previous day's trade. After awhile the answer came back zero. I assumed that she had looked at the previous day's trading. The balance screen apparently does not flag potential free rides. A big oversight and one easy to fix IMO. After a week or so I went to pull some more cash out, I was told by another rep that "Oh, by the way you got a free ride and you are being put on a cash basis for 90 days." I was pretty upset, especially about being accused by one of the reps about doing it on purpose, but I chalked it up to experience and recognizing that many Schwab reps aren't very knowledgeable.
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Then on April 1I took a quick dip into ZDZ. It also worked out well. This time I called the Manager of the Team Platinunum office and asked him to calculate the amount I owed. He called back with two amounts calculated by different methods, one much higher than the other, and told me that payment of the lower number would be adequate to ensure that I would not be charged with a free ride. Rather than use the Moneylink, I went down to the Schwab branch and deposited a cashiers check for $50,500 (I know you don't usually do numbers, but I am in this case to make a point). Not exactly chump change for me. I called back to verify once more that I was clean. He assurred me I was and verified that THE TRADES ARE NOT A FREE RIDE IF THE MONEY FROM THE PURCHASE IS DEPOSITED BY THE CLOSING DATE.
In earlier conversations with one of the reps it seemed as if he was trying to make me feel guilty over having made a lot of money in one day. I haven't had any more problems for the past couple of weeks, but the letter I just got says I now have two free ride violations and I am permanently being required to have sufficient funds ON DEOSITto cover my trades. Now with the trouble I went to to deposit $50,500 as instructed, why would I have not deposited the higher amount if told to so? Especially since my record with Schwab is clean--I have ALWAYS covered my trades within the 3 day window. Funny thing is it was a form letter mailed early in the week and I have made several trades since and have covered with delayed money links.
Schwab obviously has some fundamental problems not associated with growth. They have all my conversations on tape, but I can't even print their statements off the screen. When I've tried, the paper comes up blank. The biggest problem I've had since this started, is that it has thrown me off focus. I did very well through the beginning of April, but interestingly, since the distractions, I have lost some of my rhythm. I have definitely allowed some things get off my radar screen and not made good decisions on a couple of things that ended up costing me money or profits foregone.
I sure pegged it right on thel top though when I posted my worries on Tuesday. What I'm learning, is that if I don't have conviction, and I'm doing it only because it appears that everyone else is doing it, I should not buy. And on the sell side, if I don't like a situation, get out. I would rather kick myself over profits foregone than get caught in a big downdraft-especially with Schwab's execution performance having gotten so poor My style only--not advocating it for others.
Lessons? 1) Take the time immediately after a trade to calculate what is owed based on the total value of the buy. At Schwab, the balance total balance due for a trade shows only while you hold the security. If you sell tha security, the screen shows "0" even though you still owe the original amount, Schwab's lame system subtracts the sale. Yes, we are supposed to know how much we owe, but when you are sticking in a trade early in the AM and going back to work, it's pretty easy to look at a screen later, see the zero, and think you are alright. 2. Get what they tell you over the phone in writing, by fax or email. I think I'm going to be alright, but I'd feel better if I had something in black and white rather than having to trust Schwab's tapes.3. Change brokers. Anybody really happy with their on-line broker?
Pretty windy message. sorry. Maybe you have something to add.
Jim |
