Replies to post #171842 on The Question and Answer Board (IHUB)

[BigBake1]

You are telling him how to avoid a warning text, and yet his account is set up in a manner that his LAST PURCHASE will be the FIRST SALE out of his account. Worrying about a warning text is the least of his worries if he sets a limit price that is achieved before the funds settle for his last purchase. Violation of Reg T are no small matter, it can seriously jeopardize his account. Also once you are flagged with a Reg T violation it doesn't go away. You cannot just close the account and go somewhere else, it follows you.

Fact is he needs to change his account to a First In First Out, since it appears he is flipping penny stock. The only reason one would want to be using Last In First Out is if they are holding long term and dollar cost averaging up. It saves them taxes as they sell off their position over a period of time leaving the last sales potentially as "long term" gains. Such a strategy is of no benefit to a penny stock flipper.