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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (6879)	2/7/2000 10:10:00 PM
From: Jon Tara	Read Replies (3) \| Respond to of 18137

Wow, what a bunch of crap. Sounds like one more obstable is being thrown in front of the little guys, while the big boys continue to do as they please. I can't believe this one. Misinterpretation, or really what the NASD means? "Day-trades should occur only in margin accounts.Day-trading in a cash account may amount to free riding (i.e., purchasing a security and then selling it without having paid for the purchase)." There's an even broader implication here: it means that anybody buying stock in a cash account would be obligated to hold it for at least 3 days! That is, if this is the case, then you can't sell a stock until the purchase transaction has settled! I fail to see how this would be free-riding. You purchase the stock, and payment is due in 3 days. You sell it, and the proceeds are also due in 3 days. As long as the cash is in the account to pay for it, how is this free riding?