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Saturday, May 24, 2014

Curses! Foiled Again

Well, I put my tiny mind to work on a scheme to use the Active Trader ladder (currently used by me for /CL crude oil Futures) for stocks or ETFs. My theory being that if I put a few hundred dollars into a fund (rather than the $5,000 it would take to fund a Futures account), I could trade wee baby stock or ETF trades, making $10 a day or some such lightweight thing...but in REAL money, and slowly build myself a real money fund. Just as I doubled my play money fund.

Might not be the most exciting trades around, but REAL MONEY. I'm tired of the paper money. Sounds good, no? I got really excited!


I had a thought...and went uh oh, and got on the phone with Think or Swim pronto.

Tell me, sez I to the broker customer rep, that the Pattern Day Trading rules that apply to option trading do NOT apply to trading stocks or etfs.

I can't do that, sez he. They do.

SEE MY BLOG POST regarding day trading regulations.

My heart sunk like a Liz Taylor diamond in a straight up martini. Hopes and dreams quashed again.

But I shall get my trading fund back. Somehow.


  1. That is not the case with TOS if you open a cash account. You can trade as often as you like as long as you have the available funds. I have a cash account and none of my trades count as day trades, even though I buy and sell the same day. You can even set up your account to show the number of day trades at the top, where it shows the account info.

    1. That's true, but with a Cash acct you have to wait for closed trades to settle. F unds are not released until after 3days (i think?) so your fund needs to be substantial

  2. If you purchase options, they clear the following morning, so you can just purchase stock or etf options.

    1. Cash accounts are required to abide by industry wide settlement rules that were established through Regulation T of the Securities and Exchange Act of 1934. These rules dictate that cash proceeds from Stock, ETF and mutual fund trades will settle on the third business day after the trade date. Option trades on the other hand will settle the next business day.

      (from the Web)