Wednesday, July 20, 2005
Do you know what ticks me off? Rule 2520. It says that if I day trade with less than 25,000 dollars then I get some of my privileges taken away. I lose my margin rights. Margin is not a butter substitute. Margin is money that my broker will loan me to play with. If I lose then I pay them what I lost. If I gain, then I only pay back what I borrowed. (Plus a small interest amount.) Of course, since I would be using it to day trade, then I wouldn't pay any interest on it. (I think.) I'm not sure. Anyway, you can't day trade on less than 25,000 dollars. If you do, then you lose your margin privileges. Basically, your broker will loan you double your amount. If you have 5,000 dollars, they will loan you 5,000 more.
Unless you have 25,000 dollars in your account. Then you get quadruple margin. They will loan you 75,000 dollars. Thereby making it possible to lose/make your money faster than if you only had 24,000 dollars in your account.
That rule 2520, really ticks me off. I could do some damage if I could only keep my margin rights. I think that I could get one percent a week on my money. Maybe more. I guess that I just have to wait longer then. I'll have to build up some more money. Just when I think that I am at a point that I can really kick some butt at trading, something happens that makes me realize that I can't. Oh well, at least it makes me save money.
I guess that I will buy more tax deeds.
And speaking of tax deeds, I have a court date concerning the house that I lost coming up next week. The county filed a court date to give my money back. (It seems that I have to go to court to get anything done nowadays.) They actually volunteered to pay me interest. The problem is that they miscalculated the starting amount. So basically, I get my money back. If I can actually file a response this time (Last time I couldn't.), my attorney is going to file to get the 500 dollars difference corrected. That means that I will have been paid 500 in interest. About 9 percent of my investment.
Of course, the thing is that I am not counting my attorney fees which will over 600 dollars. (That I can take off of my taxes.)
Unless you have 25,000 dollars in your account. Then you get quadruple margin. They will loan you 75,000 dollars. Thereby making it possible to lose/make your money faster than if you only had 24,000 dollars in your account.
That rule 2520, really ticks me off. I could do some damage if I could only keep my margin rights. I think that I could get one percent a week on my money. Maybe more. I guess that I just have to wait longer then. I'll have to build up some more money. Just when I think that I am at a point that I can really kick some butt at trading, something happens that makes me realize that I can't. Oh well, at least it makes me save money.
I guess that I will buy more tax deeds.
And speaking of tax deeds, I have a court date concerning the house that I lost coming up next week. The county filed a court date to give my money back. (It seems that I have to go to court to get anything done nowadays.) They actually volunteered to pay me interest. The problem is that they miscalculated the starting amount. So basically, I get my money back. If I can actually file a response this time (Last time I couldn't.), my attorney is going to file to get the 500 dollars difference corrected. That means that I will have been paid 500 in interest. About 9 percent of my investment.
Of course, the thing is that I am not counting my attorney fees which will over 600 dollars. (That I can take off of my taxes.)
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