thats what ive been using and reset it to 10k today.


On Mon, Apr 12, 2021 at 3:54 PM Tyson Burris <[email protected]> wrote:

> No, you only need to maintain 25K if you are flagged as a day trader.
>
> As long as you buy one day and sell the next you cannot be flagged.
>
> If you bought and sold 4 times in one day you would be one away from a
> flag that requires 25K.
>
>
>
> If you use Ameritrade you can download think or swim app and trade on the
> fake 100K account and see how it does. This is a way to learn without risk.
>
>
>
> *Tyson Burris, President*
> *Internet Communications Inc.*
> *739 Commerce Dr.*
> *Franklin, IN 46131*
>
> *Office #* *317-738-0320 *
> *Cell/Direct #* *317-412-1540 *
> *Online: **www.surfici.net* <http://www.surfici.net>
>
>
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> *From:* AF <[email protected]> *On Behalf Of * Steve Jones
> *Sent:* Monday, April 12, 2021 4:10 PM
> *To:* AnimalFarm Microwave Users Group <[email protected]>
> *Subject:* Re: [AFMUG] OT: penny stocks
>
>
>
> So if you dont trade on margin, you still have to have a margin account
> with 25000? The more im learning and reading the more I understand why
> certain people believe there needs to be more regulation. The crazy amount
> of risk, aside from just putting your money up, margin, short sale, etc. I
> dont have any interest in doing much of that, in regular life I try to be a
> cash guy (though economy and paycheck doesnt allow that) but I wouldnt ever
> consider taking a load out to go to the casino.
>
>
>
> I see the risk aversion, I switched my paper account balance to the actual
> amount id be willing to risk, and suddenly I wasnt as adventuresome, I
> assume that would amplify when actual money goes in. I dont mind my risk on
> the limited long term stocks, I think theyll perform well, Smith and Wesson
> in particular.
>
>
>
> I have my paper account sitting at -1900 for the day with pending sells
> for tomorrow that I think will hit the expectations at 9 tomorrow. Is that
> considered day trading since part of the cash was from a purchase and sell
> today?
>
>
>
> this webull place says i can day trade with 100 dollars, so if i was to
> toy with that, its just math to extrapolate to real gains or losses? Im
> just finding it hard to believe theres a way to get better than casino
> winnings without committing a crime
>
>
>
> On Mon, Apr 12, 2021 at 2:55 PM Tyson Burris <[email protected]> wrote:
>
> Steve-
>
>
>
> I didn’t read the whole email chain so I maybe blowing smoke here.
>
>
>
> Margin is borrowed money based on a set value of a security.  You cannot
> Margin trade most penny stocks.
>
>
>
> Margin trading is high risk / high reward.  You MUST be careful.  A stock
> that is traded on Margin and rapidly decreases its value you can cause you
> to be in Margin CALL or even owe the broker if not careful.  Buying Power
> tends to be Margin.
>
>
>
> According to SEC regulations, a day trader is one who trades / flips five
> or more times in a trading period. If you are flagged as a day trader you
> must maintain 25K or more.  Holding a security overnight and not bouncing
> in and out of it prevents this from happening.  I believe if your account
> is flagged, you can wait 60-90 days and request the flag be removed.
> (assuming you don’t day trade anymore)
>
>
>
> Those who don’t hold a stock for a year or longer will pay a much, much
> larger capital gains tax  then those who do.  Short vs. Long term.
>
>
>
> Examples of pros and cons…
>
> I took a 30K+ loss many years ago when earnings came out and the stock
> tanked.  I had the stock purchased on Margin.  Had I not, the loss would
> have been so much less.  I was forced into a Margin call and had to take
> the large LOSS.  This is an example of Margin trading that caused a large
> loss.
>
>
>
> During Covid, I invested with Margin into a stock I knew would do well.
> At the peak, 3 million was made.  So this became a perfect case in which
> Margin trading worked really to my benefit.  I had to hold this stock for a
> year or longer to reduce the capital gain tax.
>
>
>
>
>
> *Tyson Burris, President*
> *Internet Communications Inc.*
> *739 Commerce Dr.*
> *Franklin, IN 46131*
>
> *Office #* *317-738-0320 *
> *Cell/Direct #* *317-412-1540 *
> *Online: **www.surfici.net* <http://www.surfici.net>
>
>
>
> [image: ICI]
>
> *What can ICI do for you?*
>
>
> *Broadband Wireless - PtP/PtMP Solutions - Mesh Wifi/Hotzones - IP Cameras
> - Fiber - Towers - Infrastructure.*
>
> *CONFIDENTIALITY NOTICE: This e-mail is intended for the*
> *addressee shown. It contains information that is*
> *confidential and protected from disclosure. Any review,*
> *dissemination or use of this transmission or its contents by*
> *unauthorized organizations or individuals is strictly*
> *prohibited.*
>
>
>
> *From:* AF <[email protected]> *On Behalf Of *Steve Jones
> *Sent:* Monday, April 12, 2021 1:02 PM
> *To:* AnimalFarm Microwave Users Group <[email protected]>
> *Subject:* Re: [AFMUG] OT: penny stocks
>
>
>
> I just dont get it
>
> I reset my account to specific cash amount. I dont understand buying
> power, seems like credit.
>
> The one im toying with is RGBP, if someone can look and tell me what
> thinkorswim is letting me do that the real world wouldnt allow
>
>
>
> On Mon, Apr 12, 2021 at 11:47 AM Carl Peterson <[email protected]>
> wrote:
>
> It is also pretty easy to look like a genius when markets are going up an
> idiot on the way down.  Markets have been going up and up and up for a long
> long time now.  At some point that party will end.
>
>
>
> On Mon, Apr 12, 2021 at 11:44 AM Carl Peterson <[email protected]>
> wrote:
>
> What is often missing from play accounts is often liquidity.  They
> generally assume you can make any trade at wherever the current "price"
> is.   If you are trading VWAPY that might generally be true.  Perhaps not
> for VWAGY.  Often not when trending $rando penny stock.
>
>
>
> On Mon, Apr 12, 2021 at 11:12 AM Steve Jones <[email protected]>
> wrote:
>
> im simply not grasping this
>
> on the paper trading site, ive made 7500 this morning on 10k i was playing
> with. thats 11,000 dollars in 2 days of playing around with essentially
> 10,000 up front. There has to be more to this.
>
> i see on my schwab account if i make more than 4 same day trades in a week
> i get flagged as a day trader and need to have 25,000 in my account or i
> get a margin call. I dont know what that means, im not buying on margin, it
> would be cash.
>
>
>
> assuming that I had actually had 10,000 in my real account, would I really
> have profited 11,000 in 2 days on 5 trades? (there was some math mistakes
> made, I made the same size purchase each time, forgetting that the
> increased price lowered the number of stocks i could get for 10k, but
> technically the sale would have put enough in to cover the difference)
>
>
>
> On Sat, Apr 10, 2021 at 4:08 PM Caleb Knauer <[email protected]>
> wrote:
>
> It works great, right until it doesn't.  If it was that easy then we'd
> all be wolf of wallstreet.
>
> On Fri, Apr 9, 2021 at 10:13 PM Steve Jones <[email protected]>
> wrote:
> >
> > So I've been dicking around with the market, trivial amount, 5 shares
> per stock. If I had put a lot in Tesco would have done me well.
> >
> > I have 100 shares of this penny stock, it's a gold backed
> cryptocurrency, I watch it bounce a lot throug the day and its followed the
> same trend for its couple months existence.
> >
> > So I set up a paper account and was dicking today with another penny
> stock. Set buy and sell limits with about 10,000 in the play money. It made
> 4k in 2 rounds. It's just a couple pennies it fluctuates but at 500,000
> shares that adds up.
> >
> > I told the wife and of course she wants me to cash in something and play
> with real money.
> >
> > I'm more inclined to see how the play money performs, I have some limits
> on the crypto stock that we will see what happens on monday morning.
> >
> > I'm thinking to myself there has to be a catch. If it was that simple,
> everybody would be doing it.
> >
> > You guys who mess around probably went through a time where you tried
> that kind of trading, and none of you talk about it now, so I assume the
> catch is pretty straight forward.
> >
> > I was looking at my IRA, it's done pretty good at 17 percent. But just
> taking 10k of it and playing with this at 1 percent per trading day, that
> would be another 27k annually.
> >
> > I do see why day traders need low latency though, but with limits I dont
> see it has a lot of impact.
> >
> > What's to stop a guy from spending an hour or 2 every morning with a
> relatively small amount in the big scheme of things like 10k trading to 1
> percent or better and then going to work? 100 bucks a day or more doesnt
> seem terrible for an hour.
> >
> >
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