I am working on video content of various kinds. I hope to have video watch lists and tutorials involving a wide range of topics. I hope you will enjoy them and spread the word about my blog. I am receiving a lot of buzz about this project, which has inspired me to devote nearly all of my free time to the development of this site.
I have saved enough money for 1 pattern day trading account inside the United States, which has had some unintended consequences since I began to seriously learn penny stock strategies.
To trade pennies and reserve the option of shorting with a realistic expectancy of receiving shares, a trader needs 3-5 accounts with different brokerages (and optimally different clearing firms) such as IB, SogoElite, Think or Swim, Speed Trader, MB trading, etc.
I cannot borrow from my IB account which must have 25K in it at all times, and my margin for error is so slight there I take only very "gimmie" plays when using real funds. I have opened but have not funded a TOS account, and am now laboring to save money for use in that and one I am planning to open with Sogo.
IB will be my "main" account and the others hedges or reserve brokers to nab shares on critical high probability shorts.
The net result is most of my plays in the near future will be either no play, paper, or a rare real money play with IB exclusively.
The pattern day trading rule is really lame and unrealistic. It really means 30K because you can hardly risk being margin called when using 26K, which I have managed deposit, unless you really have a risk/reward edge that is a no brainer, and this is not the norm in the stock market.
I do not think it is a good idea to split the funds and have no account which has no limit on trade frequency.
In the meantime, I will continue my watch list calls, no plays, paper, and occasional real play actions, until I can fund additional accounts. The other possibility is real fund trading on very small positions. This may become necessary soon to satisfy tax requirements in light of special reporting methods used with the IRS.
You will notice my paper plays are also quite small, because the objective is to provide an entry/exit record and % gain, only.
Because I believe in transparency where possible and applicable, I will continue to post all entries and exits, regardless of whether real or paper funds are utilized. These will be given in my session trade reviews.
The blog has a terms of service. Be sure to read it at:
http://traderbigt.blogspot.com/2010/02/please-read-my-terms-of-service-i.html
No comments:
Post a Comment