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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: cj who wrote (3708)	4/11/1998 5:23:00 PM
From: steve goldman	Read Replies (1) \| Respond to of 12617

See my replies below: Beginner Questions: 1) Is it true that the SEC limits you to ONE margin account (I suppose to prevent people from over leveraging themselves) I think you mean per account. As far as I know, loan value on securities is regulated by REgulation T which gives stocks a max loan value of 50% giving you the 2x buying power you are accustomed to calculating. Some firms make special arrangements giving clients up to 4 ot 5 x buying power which is absolutely ludicrous and incredibly risky. Imagine your position, you 10 buck stock falling 2 dollars and you being wiped out. !!! TRADING IS NOT GAMBLING. Want to gamble, go to the casino, straight down the NJ parkway, Trumps would be glad to take your money and do it quickly without as much pain. Trades need to learn how to make reliable profits, day in day out, not swinging for homerums but striking singles and doubles and the occassional sacrafice fly. 2) How does a day trader handle the 3 day settlement issue? Is it up to the broker to determine when your account gets credited (after a buy/sell), or is this a mandatory SEC rule? In other words, is it legal to trade a stock multiple times during the same day without breaking the SEC "free rider" rules (assuming of course that you have already deposited your cash with the broker before starting the trade.) I've noticed that Datek credits your account instantly after a day trade, but Schwab doesn't show the new credit until the next day. I cant speak to other firms and what they do or dont want you to have with credit balances. IN our firm, you get credit instantly. You cant demand a check or get free cash to take OUT of account until it settles, unless you have other equity, but you can spend it again. Think of buying power as a leash and you being the dog. You shoould be able to go out and back and out and back and out and back as often as you like as long as you dont go beyond the buying power. 3) Are there any other SEC rules that a beginner should know about?Beginner Questions: YOu have to know all the SEC rules, you are an investor and lack of knowledge about rules is no excuse. Typically investors are not targets of SEC attorneys but they can be. Specially, I would be familiar with freeriding rules, shorting stocks, margin rules, SOES rules, etc. Regards, Steve@yamner.com yamner.com