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Scottrade yelled at me for daytrading

Fritzo

Fritzo

Lifer
They just sent me a letter saying "Stop selling stocks sooner than three days of buying them or put $25g in your account, your choice."

Something about violating Free Ride policy. I'm familiar with the stock market, but I'm new to trading (just started this year). Did I do something really bad, or is this common?
 
I guess you've figured it out by now in that free rides occur when you use unsettled money to buy a security. It takes 3 days after you've sold a stock for the funds to be considered cleared for trading. Just don't violate this policy or get approval from Scottrade for a margin account (borrowed funds from Scottrade) and you should be OK.
 
Originally posted by: AMCRambler
Ben Bernanke is on his way to your house right now with his treasury goons! Its been nice knowing ya...
Click to expand...

Yeah have fun on fantasy island. I'm so jealous.
 
Seriously... this is FAIL.

EDIT: The $25K minimum applies to margin accounts also. You won't run into the free riding violatoin with a margin account though.
 
Originally posted by: JMapleton
Quit buying more stock than you have in your account.
Click to expand...

It's not that, it's I'm riding the volatility of the market right now and buying at the beginning of the day, selling mid-next day, but I guess it takes 3 days for the funds to clear before you can do it again (even though the money shows up as "available for trading").
 
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