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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (2087)	2/14/2000 1:23:00 AM
From: Allan C.	Read Replies (2) \| Respond to of 2120

In regards to daytrading in a cash account, I feel any rule which can't be explained in a brief paragraph and interpreted the same way by all who read it is too ambiguous and should not exist. We have a short novel written in the last group of posts by intelligent people who are trying to figure it out. Even the brokers can't agree on an interpretation. It is a very serious rule which effects the way traders trade, especially considering the severe penalty imposed if you are found in violation. The SEC should issue an interpretation which should be followed by all. It almost seems like it is one of those matters that is intentionally ignored, maybe because it is too hot of an issue. I do have a question, if you have your account restricted for 90 days, can you sell the positions you have? Say I accidentally violated rule and have a lot of short term trades going, will I be allowed to sell or am I stuck with them?

To: Dan Duchardt who wrote (2087)	2/14/2000 7:46:00 PM
From: Dominick	Read Replies (2) \| Respond to of 2120

Dan: Another name for "Excess Equity" is "Buying Power". Going through the formula once your equity falls below 50% of current market value you have no buying power. Therefore, your new purchase requires the 50% Reg T deposit. I believe you have to determine each equity position separately then add them together to see if your total account equity is increased with that deposit. If your stock advances your excess equity increases. Hope this helps, Dominick