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

To: shneed who wrote (10083)	9/3/2000 1:18:01 PM
From: TOPFUEL	Read Replies (1) \| Respond to of 18137

shneed this is what I was told lets say you think a few stocks will gap for you the next morning so you make your purchases you have 50k in cash and take your cash balance down to $4500 after those purchases at the bell. Now you wake up the next morning and you are all happy your plan worked you sell those stocks that you bought the morning before for a $3500 dollars in profits so now in reality you think you now have $53500.oo to trade with the rest of the day right??? WRONG!!!!!!!! guess again according to peson rules or he mummbled a nasdaq rule as well its hard because these people speak horrible english at my track at times to make out what they are saying.. But according to them you can use the buying power you had overnight which is your $4500 dollars plus your Profit proceeds from the stocks you sold just sold so in actuality they are saying you can only trade with the $4500 in cash from night before plus the $3500 so really you only have $8000 buying power you can trade with for that day unless you sell stocks you have held for over for more then one day if you go over that $8000 at anytime during the day in purchases you will start to accumulate a daytrading call. You can buy and sell all day long your $8000 as long as you do not purchase over 8k in secruities at any one time in between trades offcourse if you make a profit on one of the trades throughout the day your buying power you can use will grow as well . But if after you sell all your stocks in the morning you bought from day before and got 13k of another stock you would be up to a 5k daytrading call for the day .. Then if you sell that stock and break even and buy another and buy 15k worth of stock you now have 7k daytrading call .(if you trade more times and do not go over the 15k your daytrading call will not increase unless you buy over 15k in stocks at one time) If you use whole 53,500 at one time you will get slapped with 45k daytrading call OUCH. only way to avoid this daytrading call you would have to have 45k worth of marginable secruities in your account to cover the call for the day .... You can use cash I am told if you sell a stock you held on for more then one day though the problem only will occur when you buy a stock and sell it the next day .. I know sounds confusing has something to do with 3 day rule settlement of secruities .. PS.. you can not sell other stockes in your account that you own to cover the call at the end of the day all your trades are done in order so if you have 8k in buying power (even thought you think you have $53,500) and you buy 13k worth of stocks and accumulate a 5k daytrading and say opps at end of day and try selling 5k of another stock you own to cover it guess what it does not work that way. I know because i found that out this week.. PEnson sucks we never had this problem when we had herzog as clearing house TOny in margin said they ignored that rule and penson follows it.. My next question to him was where is email or PR stating this major change in trading policy his answer we just found out about this problem . THIS IS OVER 2 WEEKS AGO