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I personally don't know what Andy does, but you can sell that fish. When I used to live in Juneau, you could take a Salmon to a restaurant and sell it for good money. I sure would sell that "Butt" fish!Originally Posted by Los Tiburones
Jeff,
I can instantly buy another stock, but not the same stock without a penalty. Rule T of the SEC says that you must suffer after 3 trades per week. I heard today that part of the medical plan amendments includes tax on stock purchases and trades. I will have to re-inquire about round trip trades. I am hazy on it. If anybody knows, please let us know. It is consistent across the board.
Put in an order tonight to beat the news, provided that you want it at .035. I don't know where it will take off to though.
Good one Tib!! Here it is:
3 Signs You Have a Pet Stock
One of my top 5 trading books is How I Made $2,000,000 in the Stock Market by Nicolas Darvas. From time to time I re-read this book because there are some good lessons and reminders in it. On page 11, Darvas refers to stocks he was trading in a funny way but one which all traders have been familiar with at one time or another:
“…For some of them I acquired a special liking. This came about for different reasons. Sometimes it was because they were given to me by a good friend of mine – other times, because I had started by making money with them. This led me to prefer these stocks more than others, and before I knew what I was doing I had started to keep ‘pets’.
I thought of them as something belonging to me, like members of my family. I praised their virtues day and night. I talked about them as one talks about his children. It did not bother me that no one else could see any special virtue in my pet stocks to distinguish them from any other stocks. This state of mind lasted until I realized that my pet stocks were causing me my heaviest losses.”
No doubt we’ve all encountered our share of “pet” stocks, but are you holding onto any of them right now? Here are three signs you may have a pet stock:
If you’re scalping stocks like GOOG, CME, RIMM or AAPL without success and yet you continue to trade them day after day, then you’ve got a pet stock.
If you’re sitting in a losing trade but you just can’t pull the trigger on it to cut it loose like you know you should, then you’ve got a pet stock.
If you find yourself repeatedly trying to time entries on a stock in which you’ve profited in the past but you cannot seem to catch a move in it now, then there’s no doubt you’re clinging to a pet stock.
Pet Stock Trade in your pet stock for some ch….ch….ch…..ching.
Any of that sound familiar?
It does to me. I made 107 points in BRCD between 1/24/00 and 2/18/00 (bought $172, sold $279), and needless to say it was the biggest move I’ve ever caught. That’s the good part. The bad part is, for the months which followed that one glorious trade, you better believe that BRCD was my pet stock. But it didn’t love me back the way I loved it, and I gave more of those profits back than I should have, little by little just hoping for one more ride on the magic carpet known as BRCD. Fortunately, I learned that with stocks, you’ve gotta love ‘em and leave ‘em!
If you’re clinging to some pet stocks, take a good long look at what you’re doing. If you’re right, your P&L will show it. But if profit seems to be the one missing ingredient in your master plan, then it’s time to let that pet stock go and look for another good trading opportunity elsewhere. Trade good setups because of the chart pattern, not because some stock treated you well back in the day. If your old favorite pops back up on your radar and you’re doing your homework, you’ll be sure to see it. There’s just no reason to cling to it until then.
By the way, subscribing to this RSS feed will mean you won’t ever miss a post!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
Technorati Tags: Stocks, Investing, Stock Trading, Trading, Trading Psychology, Darvas
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The rule is you can only do 3 round trip(buy and sell) day trades in 5 rolling business days. The 4th round trip and you will be flagged as a pattern day trader and your account will be frozen for 90 days. To get around it you must have $25k in your account at the beginning of the day.
Thanks Stang...that is the way that I have understood it also. You cannot re-buy the same stock in the same day under any circumstances. Thank you for your clarification! When you sell it is unsettled funds and takes 3 days, at least on Scottrade. Some other sites take longer. It is much appreciated!
Sounds like you have a margin acct at ETrade Jeff. I used to have one too. Well, I still do, but no money in it and never use it.
With TDA margin accts, you can buy a stock and sell it the next day as many times as you like. As far as buying/selling on the SAME DAY, thats called a round trip trade at TDA. You are allowed 3 round trips in any 5 day period. After that, they threaten to make you a day trading acct and that has lots of bad taxes with it.
Hope this info helps.
Just read everyone elses response so this is now a bit redundant...
Last edited by ShotsII; 08-26-2009 at 12:41 AM.
Shots,
That is an interesting concept. You can sell, sell, sell. That isn't any different from a cash account. I can sell all day long with no penalty, but I cannot sell and re-buy without a round trip and the three day rule. Hmmm Is it really a margin account of sort?
Anybody can sell, sell, sell, but buying back in is the hard part. Am I missing something here? If so, please tell me. I am not the sharpest pencil in the drawer, but not the dullest either.
I'm pretty sure if you have a margin account you should be able to use the funds right away to buy but you still have to abide by the Pattern Day Trade rule
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