Let's all climb mountains in 2016 -- no matter how much higher they get and how much shorter you get!
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TG, OK, just checked with my brokerage house again, with the head of dept. this time, and here's what he said.
PDT rules do not apply in IRAs. If I begin the day with a cash balance of say $15K, I can make as many purchases as I like UP TO $15k. Whether I chose to sell those purchases the same day is immaterial, I just cannot exceed the beginning cash balance in the account FOR PURCHASES.
So, I could make say five roundtrips on one stock costing $3,000, or I could make five roundtrips on five different stocks costing $3,000 each, or whatever combination, there is no limit on the number of purchases I may make, or roundtrips if I choose, except that I cannot spend more than the balance that was in cash in my account on the morning of those trades. I can do that every day of the week if I wish.
Sure hope they are not misinforming me. I sure don't want problems with the SEC, and he did say that it was MY responsibility to stay within the limits, and I was the one responsible to the SEC, not my brokerage firm.
Newly
TG, what's your understanding re daytrading rules of SEC in IRA's over $25K?
Newly
I questioned them very specifically about that because I certainly don't want to run afoul of any SEC rules leading to problems. I also took the guy's name in case he misinformed me, but he seemed to know what he was talking about, and this is an old, respected Wall Street firm, so they should know! Maybe I'll call again today and see if someone else tells me the same. . .
Newly
OT
Some time ago we had a discussion here about SEC regulations for daytrading in IRAs, but I wanted further clarification before trading those accounts too heavily.
Today I checked with my broker, who told me the PDT $25K cutoff point and the 4 roundtrips in any 5 days restriction apply to margin accounts only, not cash accounts (which all IRAs are).
According to them, in an IRA one may daytrade to one's hearts' content, make as many roundtrips as one likes, provided the cost of securities purchased on any one day does not exceed the amount of cash in the account AT THE BEGINNING of that trading day (7:30 a.m. EST pre-market).
So, although the proceeds of sales made might increase the balance in one's account during the trading day, one still cannot buy more than the amount in the account that morning.
SEC rules dictate that the first time one exceeds this amount, one is warned. The second transgression, the proceeds of the trade (be they a gain or a loss) are removed from one's account (but this does not apply if one exceeds the limit when buying an issue one was not already trading that day, and which is not sold the same day). Does that make sense?
Newly
PANL: I'm not married to the stock, just trade it when the price looks extreme and due for a reversal. They did get themselves into some bad financing recently, but quickly saw the error of their ways and did issue a secondary to resolve the situation. I have my reservations about them long-term. Thanks for the info.
Newly
Yah, one of these days we won't even need bodies anymore. We'll just lie around and experience a virtual life instead. GGG. Wonder how virtual trding would be. Hmmmmmmmmmmmmmmm
Newly
Lots of fascinating developments in display tech these days.
Looks like Pixelworks mostly involved with plasma displays, and going after TV and computer monitors market, the same space OLEDs are aiming at, though OLEDs are not technologically ready to enter the marketplace yet.
I believe OLEDs main advantage is in portable displays (laptops, cell phones), where energy efficiency is important, and OLEDs can be mounted on flexible plastic (less breakable, lighter weight) -- someday we will all be wearing our computers on our clothes!
Hope the current economic climate doesn't destroy some of this technology before it ever gets to market. Time will tell.
Newly
I only mentioned PANL as you mentioned EK's OLEDs, and it is a pure OLED play, probably the best in that space. EK's are flourescent, not up to the quality of PANL's phosphorescents.
The stock price has run up quite a bit recently (too much, IMO), and I do NOT recommend the stock at this price. The company is a long way from significant revenues, which are expected to come mainly from manufacturers licensing PANL's patented OLED processes, which in any event are not ready yet since PANL still doesn't have life-time necessary for a true blue. May need more cash in a year, has had nibbles from Sony and other big-names, but no licensees so far (mind you, that agreement is only necessary when a manufacturer actually SELLS [not produces] a product).
The technology is incredible, not sure the company is! I've owned it and traded it off and on for several years because I like the "story", but it's not really a trader. Do your own DD. Good luck!
Newly
PXLW is involved in developing software/semiconductors for advanced types of displays. PANL is a developmental-stage company working on creating a new type of organic display material (OLEDS), with an eye to licensing use of their patented processes, not producing a product per se themselves.
Newly
If you are looking for a pure OLED play, PANL is a better bet than Kodak. PANL has the patent for the FOLED (flexible oleds), though the share price has run up quite a bit recently. Also, I believe Kodak's OLED patents will be expiring in a couple of years.
Newly
"bright, innovative ideas will have been lost."
______________________
That is the saddest part of this economic malaise. But much of it will also be recycled. Just had one of my little start-up developmental-stage companies go BK (TRCD), but the patents on their innovative storage product were bought by ADPT and will live on (at least if that company survives), perhaps in an even better incarnation than TRCD would have dreamed.
But unfortunately a lot of the good will be lost along with the bad, as good tissue is cut out with the infected tissue. That's the price paid to regain health. But cycles are cycles, and innovation will return at some more economically feasible point.
Newly
"bright, innovative ideas will have been lost."
______________________
That is the saddest part of this economic malaise. But much of it will also be recycled. Just had one of my little start-up developmental-stage companies go BK (TRCD), but the patents on their innovative storage product were bought by ADPT and will live on (at least if that company survives), perhaps in an even better incarnation than TRCD would have dreamed.
But unfortunately a lot of the good will be lost along with the bad, as good tissue is cut out with the infected tissue. That's the price paid to regain health. But cycles are cycles, and innovation will return at some more economically feasible point.
Newly
Allowing small, nonviable companies to die a quiet death rather than proping them up a la Japan is better IMO, allowing a larger market share and more pricing power for the survivors. The cancer has to die for the patient to survive!
Newly
mlsoft, you're sure not alone on that one! We've all gotten punished at one time or another for breaking that rule, yet from time to time we all still do it -- and more often than not get caught yet again!
Newly
Congrats. Superbly played, Maestro!
Newly
I don't hold ANYTHING long-term anymore (GGG). Don't even know the names of half the companies I trade, like Oh My God, OMG. I just play the tape!
Newly
Well, I reckon BRCD OWED US big time, since its loooooooooooooong hibernation lately, so now it's payback time!
Love these afterhours earnings plays.
I'm not as fast on that trigger as you are. Think BRCD is done for now. Swooning badly. We'll see what the a.m. brings. . .!
Newly
Congrats! You ARE fast on the trigger! Coming back up now, though.
Newly
BRCD all over the map. Was 7.40 seconds ago, now 7.19. Wonder if I'll be glad or sorry I dumped half at 7.35 pre-close!
Newly
Anyone (besides me -- half a position) holding BRCD into earnings tonight?
Newly
Was it the Battle of Hastings when Haley's comet streaked across the Heavens scaring the bejesus outa the combatants and sealing England's fate in the process?
Newly
Norman invasion/conquest of England ("1066 And All That").
Newly
"Hence the old advice to let winners run & cut losers fast." Actually, one can even have 3 bad trades out of 5 and still make lots of money doing that!
This looooooong bear market has made me overly anxious about letting profits sit too long for fear of losing them in a swift downdraft.
I buy right, watch the price climb, then sell for a small profit, often leaving over half the gain on the table. For example, just this week, I bought GLW at 2.23 and sold at 2.77, and 2.65; it closed Friday at 3.39. Did the same with JNJ and AMGN earlier this year.
I console myself by saying no one ever went broke taking profits, but I certainly need to concentrate more on trusting the targets I identify and defining appropriate time-frames in which the stock price should "mature", instead of jumping overboard as soon as the the sea begins to get a little rough!
Newly
"Always sell for small profit, right before the big jump"
Don't worry about it, Rayman, so do I! It never hurts banking a profit -- unless it goes up 2 pts later the same day (LOL)!
Still, a profit is a profit, and that beats a loss!
Newly
PANL - Nice rounded bottom, possible C&H forming on daily. Gapped above upper BB on strong volume this a.m. Featured on CBS nightly news last night -- OLEDs tech co. +.73 today.
Newly
GLW raised to "outperform" by SSB. Prev.close 2.59, already up to 2.79 premarket.
Newly
Thanks, Phill. I'll try to check out what Allina has to offer.
I'm one of the millions of Americans with no health insurance (for years now). I'm really only looking for something like a major medical policy to cover the really big stuff -- could even take a $10-20,000 deductible without a problem, just to keep the premium down, but can find nothing suitable at a reasonable price, not even the Realtors' group policy! Well, guess I'll just keep looking. . . and hoping to stay healthy in the interim!
Newly
Yes, those must have been the days. I missed them completely (my portfolio averaged an increase of just 2%/year through the entire bull market) because I had a broker that was using my account as a dumping ground. He knew a bagholder when he saw one. So, I got to suffer the implosion while never reaping the gains of the runup! That's what drove me to take control of my account and learn how to make some money daytrading.
There is something to be said for starting to learn to trade in a market like this, because if one can survive this and earn a living, one can survive anything the market has to dish out!
Newly
GLW had a nice runup overnight (after closing yesterday at 2.16) on news that 3M is buying their Precision Lens Division.
http://biz.yahoo.com/ap/021112/3m_corning_precision_lens_2.html
Actually hit $2.70 right after open where naturally I sold (I bought yesterday at $2.23 -- just luck, but I like GLW and play it a lot). Looking to reenter if it falls below $2.50 again.
Newly
I'm already in at $23.39, but looks like it may drop a bit more. I glanced at the earnings report when I saw it dropping this am, but didn't read in depth. Net income $24 mil versus 18.8 mil for Q301. $247 mil operating cash flow. What did I miss?
Newly
I've been in the market for cheap health insurance (for one) for the self-employed for years. They offer one through the Realtors' association, but it is no cheaper than the rest, and that ain't cheap! Anyone know a provider (not an HMO!!) with good rates for a single self-employed??? Who do YOU use for $178/mo?
Newly
I once had dinner with Bob Dylan (and some other people) at the Dugout in NYC's Greenwich Village. Geeeez, that was a long time ago, and he wasn't famous yet then . . .
Newly
Fishweed,
I live in L.A. Medical, per Blue Cross, age 35-39 family $210/mo., age 40-44 $299/mo. Car insurance, depending on driving record, age, number of drivers, etc. about $300-500/yr., 3-bedroom rental, good neighborhood around $2-3000.
Great weather, though!
Newly
Rayman, IMO in this business of trading the markets, less emotion = greater discipline = greater profits (I'm still working on that one too, LOL). Good luck!
Newly
Since it's a fairly boring market today (so far), here's a take on the market (copied from mishedlo at SI-CFZ):
http://www.markfiore.com/animation/esther.html
Newly
It's the long bond that determines long-term mortgage interest rates (not the short-term rates the Fed plays with), but yes, continued low rates should help housing, allowing more potential buyers to qualify for mortgages they really can't afford, with no or low cash downpayments, and 110% loan-to-value refies, setting us up for another wave of foreclosures down the road.
You'd think with the real estate market crash of the early '90's and all the S&L failures someone would have put some reasonable rules in here. Instead, you and I, the taxpayers of America, are expected to continue to pay the bill to bailout financial institutions failing due to overly lenient loan practices. And those institutions that apply more stringent loan qualification rules are smacked on the hand by HUD, or whomever, for not making more mortgage loans to low-income, high-risk borrowers. It's insanity!
Will man never learn? We constantly mortgage our future to pay for today's indulgences! We have no concept whatsoever of deferring current pleasure for future gain.
Who was it said life is the toughest school of all because one gets the test first -- and the lesson afterwards?!
All JMHO, of course.
Newly
Re: Gold
Just saw this in John Maulden's "The Daily Reckoning" of 10/31/02
"Sun Valley just released a thorough report on how gold performs in deflation. Turns out, gold is one of the best things you can own. When times get tough, businesses go belly-up and loans go bad. People begin to wonder about the quality of the paper they hold. The dollar, the world's most ubiquitous paper asset, could take a big drop. Investors look for safer places to put their money. What they find is gold, the money-of-last resort, the anti-paper asset."
I believe that is just what happened in Japan's recent deflation -- people turned to gold.
Logically, I would assume the opposite would happen and that the price of gold (basically a commodity) in terms of the USDollar would fall during a period of deflation in the USDollar, since gold is basically considered as a "store of value" (commanding the same amount of goods and services regardless of whether it rises or falls against the dollar), and in deflation the value of each dollar bill RISES (in the sense that each dollar can buy more goods and services).
Worldwide, of course, if people lose confidence in the dollar, and everyone converts their hoards of dollars into gold, the price of gold would artificially inflate, as happened in the early '80's. But why would one expect people to lose faith in a currency that was gaining value in "real" terms (purchasing power)?
I would expect gold to rise mightily in a period of inflation, but in deflation? At least within our borders, I would think people would, psychologically at least, be unhappy with a commodity purchased at say $300 one day, that could only be sold for $290 the next, regardless of the fact that the $290 had more purchasing power than the $300 had the day before! I think people would hang onto those highly-liquiid, rising-in-purchasing-power dollars, and eschew gold and other (especially highly illiquid) investments such as real estate!
I'm not conversant with the ins and outs of the currency markets, nor do I understand exactly how other currencies would be expected to react to a deflating dollar (except the concept of deflating their own currencies to maintain their price advantage in our marketplace), so maybe it is correct that on a world-wide scale the price of gold would rise mightily against the USDollar during deflation in the dollar. Just seems odd to me.
Newly
For those following the housing market:
"Foreclosures dip in Golden State", 10/30/02
"We're probably close to the bottom right now; we expect foreclosure rates to edge up a bit between now and spring as appreciation rates level off," said DataQuick President Mike Ela. "Foreclosure activity is a lagging indicator and reflects financial distress half a year to a year prior."
Also mentions 3/4 of homeowners in default bring their payments current or sell, paying off their mortgages.
http://www.inman.com/printer.asp?ID=32574
Newly
Never used Datek, so can't comment there. Wish IB had Level II free, but I guess you get what you pay for!
IB commission:
STOCKS:
USD 0.01/Share, up to 500
USD 0.005/Share, >500
OPTIONS:
USD 1.00/Contract, Option Prices > USD .10
USD 0.50/Contract, Option Prices USD .05 - USD .09
USD 0.25/Contract, Option Prices < USD .05
http://www.interactivebrokers.com/index.html
As I said, it suits my trading style, particularly the ability to place a trade with two clicks of the mouse, with fast execution. Your mileage may vary. Good luck!
Newly
Fred,
Yes, changing brokerages is a pain and sure cuts into one's trading time! Have you thought about establishing separate accounts at the brokerages you like to find out which one works best for you? I did just that, and IB won (best accommodates my trading style); your mileage may vary. Good luck!
Newly