July 28, 2010

Opened cash account from Scottrade this monday. I unintentionally traded 10 times i only have 2000$ in my acco?

By Planet Wealth

so,, am i in distress? I just found about the Pattern Day trading rules. And it seems like my account is going to be frozen?

What would be the best thing for me to do? should i just sell all stocks tonight and withdraw all the moeny before my account is frozen?

or what can i do? it was just a mistake i had no thought about this rule. obviously i’ve never traded before.

Topics: Uncategorized | 2 Comments »

MoneyNevrSleeps Says:
July 28th, 2010 at 10:20 am
No need to worry. It is kind of like rolling doubles in Monopoly…you will just have to wait a few turns before getting to roll and get out of jail.

Basically, you traded intraday (day trade) at least 4x within 5 business days. I don’t know how you traded 10x (because they should have blocked you), unless some of the trades were either a) less than 6% of your equity or b) part of the same trade (had 100 shares and sold partial amounts each time).

The account becomes frozen until the time period is up (if all this happened today, then the next day you should be able to trade is next Tuesday I believe).

What you can do: 1) You can hold the stocks you own right now 2) You can sell the stocks you own right now

What you CAN’T do: 1) You can’t buy any stock until the time period is up

In the future, don’t trade in and out during the day. As long as you hold something overnight, you won’t be charged with a day trade and won’t face a frozen account again in the future.
M.C.I. Says:
July 28th, 2010 at 10:20 am
You probably would be able to get money out but they won’t let you trade on a margin-it’ll eventually turn into a normal account after a couple days. Talk to the staff and if everything’s excellent transfer your money to another brokerage.

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