ETRADE Rookie seeking clarification

creativeexpression · 06-25-2006, 12:15 PM

After having recently begun my etrade account and purchasing stock for my portfolio I was surprised when one jumped up to my alert point and promptly sold it to add the gain to my account. Then in seeing another I wished to buy I began to place the order only to receive a warning that this would result in a 90 day suspension.

Ebay the explained that there is always a five day float time when I make deposit money from an external source and a three day period after I sell stock before I can purchase new ones.

With a three day period after a sale before I can buy new stocks how can one even consider prompt sales such as I made to benefit from those times when a stock does well. How then do day traders function if there is a three day lag and 90 day penalty if one proceeds?

Any best way to work around this?

NATHAN LLOYD · 06-25-2006, 12:49 PM

Find a better broker.

creativeexpression · 06-25-2006, 01:50 PM

Meaning?

bahroor · 06-25-2006, 10:08 PM

etrade charges too much for my taste...
I think scottrade is too much @ $7 a trade, but we all have out own tastes..

anyway, the 3 day rule applies to everyone (I think day traders too?) and it simply says that you can use the funds from a "sell" to purchase any stock, BUT you just can't sell that one within 3 days of the first "sell" date (the time it takes the funds to "settle"). If you do its a free ride, and that's a no no (says the SEC, has nothing to do with your broker) then your account is frozen for 90 days.
you can get around that by depositing additional funds to cover that sale.

clavocat · 06-25-2006, 10:24 PM

bahroor what do u use?

bahroor · 06-25-2006, 10:31 PM

same as you clavo, but I'm not too happy with them right now.

clavocat · 06-25-2006, 10:37 PM

yea decently cheap trades but 2-5 dollars is my liking lol, i think im gonna change to IB so i can short stocks under 5 bux, i.e. LOUD lol...but i like how scottrade is near my house and they're real nice to work with...who knows..

bahroor · 06-25-2006, 10:55 PM

You woulda made a ton on loudd clavo!

yeah, here's the deal, I hate that I have to send a check to deposit, I think they're slow (in terms of executing orders. etc.). Just basic/barebone service.
But I guess they're easy to use and relatively cheap...

regarding IB clavo, fyi, you must keep 2,000 in your account at all times and I think they charge more if you're under 25 (I think I read somewhere that you're 18/19? man, I have a good memory).

speedcrazy1532 · 06-25-2006, 11:01 PM

you guys should try www.lowtrades.com. I like it so far, yet i have nothing to compare it too, and i think "day-trading" is something you have to clarify with your broker then they make you have a minimum balance of xx,xxx dollars to qualify. I know lowtrades is 25 grand.

bahroor · 06-25-2006, 11:27 PM

Quote:

Originally Posted by speedcrazy1532

you guys should try www.lowtrades.com. I like it so far, yet i have nothing to compare it too, and i think "day-trading" is something you have to clarify with your broker then they make you have a minimum balance of xx,xxx dollars to qualify. I know lowtrades is 25 grand.

Ahhh, they charge $.003 / Share for OTC/ETFs, so I'll pass.
Also, daytraders must maintain $25K regardless of broker.

06-25-2006, 12:15 PM	#1
creativeexpression new member Join Date: Jun 2006 Posts: 9	ETRADE Rookie seeking clarification After having recently begun my etrade account and purchasing stock for my portfolio I was surprised when one jumped up to my alert point and promptly sold it to add the gain to my account. Then in seeing another I wished to buy I began to place the order only to receive a warning that this would result in a 90 day suspension. Ebay the explained that there is always a five day float time when I make deposit money from an external source and a three day period after I sell stock before I can purchase new ones. With a three day period after a sale before I can buy new stocks how can one even consider prompt sales such as I made to benefit from those times when a stock does well. How then do day traders function if there is a three day lag and 90 day penalty if one proceeds? Any best way to work around this? __________________ cw

06-25-2006, 12:49 PM	#2
NATHAN LLOYD forum leader Join Date: Feb 2006 Posts: 1,224	Re: ETRADE Rookie seeking clarification Find a better broker.

06-25-2006, 01:50 PM	#3
creativeexpression new member Join Date: Jun 2006 Posts: 9	Re: ETRADE Rookie seeking clarification Meaning?

06-25-2006, 10:08 PM	#4
bahroor forum leader dec/06 simulation winner weekly challenge winner Join Date: Apr 2006 Posts: 1,147	Re: ETRADE Rookie seeking clarification etrade charges too much for my taste... I think scottrade is too much @ $7 a trade, but we all have out own tastes.. anyway, the 3 day rule applies to everyone (I think day traders too?) and it simply says that you can use the funds from a "sell" to purchase any stock, BUT you just can't sell that one within 3 days of the first "sell" date (the time it takes the funds to "settle"). If you do its a free ride, and that's a no no (says the SEC, has nothing to do with your broker) then your account is frozen for 90 days. you can get around that by depositing additional funds to cover that sale.

06-25-2006, 10:24 PM	#5
clavocat valued contributor weekly challenge winner 2x Join Date: Mar 2006 Location: buffalo Posts: 991	Re: ETRADE Rookie seeking clarification bahroor what do u use? __________________ "Formal education will make you a living, Self education will make you a fortune" My Mutual Fund to beat the S&P500: LONG: FXI, GS, MO, AAPL, RIMM, PCU SHORT: LVLT Funds- OBCHX- 80% in one year OBIOX- I love International International is my idea of a gold mine for the upcoming years

06-25-2006, 10:31 PM	#6
bahroor forum leader dec/06 simulation winner weekly challenge winner Join Date: Apr 2006 Posts: 1,147	Re: ETRADE Rookie seeking clarification same as you clavo, but I'm not too happy with them right now.

06-25-2006, 10:37 PM	#7
clavocat valued contributor weekly challenge winner 2x Join Date: Mar 2006 Location: buffalo Posts: 991	Re: ETRADE Rookie seeking clarification yea decently cheap trades but 2-5 dollars is my liking lol, i think im gonna change to IB so i can short stocks under 5 bux, i.e. LOUD lol...but i like how scottrade is near my house and they're real nice to work with...who knows..

06-25-2006, 10:55 PM	#8
bahroor forum leader dec/06 simulation winner weekly challenge winner Join Date: Apr 2006 Posts: 1,147	Re: ETRADE Rookie seeking clarification You woulda made a ton on loudd clavo! yeah, here's the deal, I hate that I have to send a check to deposit, I think they're slow (in terms of executing orders. etc.). Just basic/barebone service. But I guess they're easy to use and relatively cheap... regarding IB clavo, fyi, you must keep 2,000 in your account at all times and I think they charge more if you're under 25 (I think I read somewhere that you're 18/19? man, I have a good memory).

06-25-2006, 11:01 PM	#9
speedcrazy1532 valued contributor Join Date: May 2006 Location: Philadelphia, Pa Posts: 78	Re: ETRADE Rookie seeking clarification you guys should try www.lowtrades.com. I like it so far, yet i have nothing to compare it too, and i think "day-trading" is something you have to clarify with your broker then they make you have a minimum balance of xx,xxx dollars to qualify. I know lowtrades is 25 grand.

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