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Non-Tech : A.B. WATLEY - THE ULTIMATE TRADER! -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (450)	12/23/1998 12:46:00 AM
From: Paul K	Read Replies (1) \| Respond to of 2045

Tim, a month ago you were all excited about joining MBTrading like it was the best thing going, and you visited their operations, etc... are you now with A.B. Watley? What happened to cause you to change?

To: Tim Luke who wrote (450)	1/3/1999 8:29:00 PM
From: AHM	Read Replies (1) \| Respond to of 2045

You need to take it one step further - and this is why I left Watley. If you hold stock "X" overnight and sell it the next morning your margin is fully restored, except..... 1. You may not buy stock "X" again that day unless you have additional equity prior to the sale of stock "X" - and then you can only buy up to twice your start of the day equity. 2. You may use twice the sale proceeds of stock "X" (held overnight) to buy any other stock EXCEPT stock "X". BUT.... you cannot sell the stock you have just bought until the next day without resulting in a Reg T call by Watley. Reg T calls can only be satisfied with cash or the sale of fully paid for shares - not with the sale of an existing margined position. (Of course this does not apply to funds that were in the account prior to the sale of stock "X" held overnight.) The above also applies if you sell short. Watley follows the SEC rules very tightly. There are other firms that feel these overnight holding rules may be more loosely adhered to... and since there are firms that permit the use of funds from the sale of securities held overnight to trade the same issue (or other issues) as many times as you want on the sale date, I left Watley to trade through one of these other firms. I hated to leave them - it is a fine firm with outstanding support and terrific professionalism. But the rules it enforces limited my ability to make money as I wanted to. For many months (perhaps even more than a year's time) it has been rumored that the SEC would modify this particular rule. It hasn't yet! If it ever happens, I would gladly return to Watley.