Aloha,

So I got a nice surprise this morning when I sat down at 3:45 am this morning (yes Hawaii time stinks).  I went to trade my very small account to find out I only had 17.00 to trade even though I have upwards of 2000 in my account. 

This is the scoop.

So apparently whenever I buy or sell it takes "3" days for the trade to settle for either transaction (buy or sell) according to my brokers account fidelity.  Since I would buy and sell within the same day, the money never settled before I sold and I was technically trading with money I never had.  I did this three time total so they suspended my account for 90 days.

I am aware of the PDT rule that applies to account under 25,000, limiting us to three trades a weak or at least I thought I understood this.  I haven't made more than three trades a week because of this.

Fidelity suggested setting up a margin account but if I remember correctly that would be like using leverage and Tim is very against using leverage in the market. Of which I agree.

Anyway does anyone know what I am missing here? Does everyone use margin accounts or cash accounts? Is this just a Fidelity thing taking three days for a trade to settle before making a new trade? I cant imagine Tims strategy ever working holding a position for three days at a time.

Any advice would help.

Also I only use Fedility because I set it up years ago without any true knowledge, if anyone has a suggestion on a broker to use over others and why it would be nice to hear what you have to say.  I am not staying out of the game for 90 days :)

 

Mahalo