stock trading accounts

stock trading accounts
stock trading accounts

Let me ask you a serious question. If you had a splinter in your thumb, you hear a doctor who suggested the amputation of his arm? Do you just follow advice blindly? What if another doctor suggested a lung transplant due to a small cough? It seems a bit drastic do not you think?

We are witnessing the same kind of healer ink right now. Only your doctor is inept SEC, and the patient is the free market economy.

What am I talking?

I'm talking about the worst idea ever. SEC's decision to place more than 800 companies in an anti-short list. Before you frown at me to climb on a soap box, let me tell you something. This anti-short provision is affecting their trade accounts. And it is not directly change an important part market.

Most annoying? Nobody says anything about it.

You're losing their rights, and not even know.

First, let me speak my piece. I find this decision to limit short anti-American. No, it is actually anti-American. In the financial world's people do stupid things all time. They buy houses they can not afford. They take money from their retirement plans – taxes and additional fees be dammed. To borrow money to invest in trade high-risk strategies. Spend more money than they do.

None of those stupid things even come close to playing against shorting provisions.

It just makes me sick. . . and crazy. There are huge global implications of this position. I'll address those in a minute.

Last week, the Dow Jones Industrial Average was the most volatile in history. You do not need me to tell you how gut wrenching the fall of 1000 points in two days. No need to tell you the confusing immediate recovery of 1000 was the point. (And they wonder why the traders drink Pepto-Bismol like water.)

The government has an instinctive reaction.

Lets get rid of short selling. We hand pick more than 800 companies and people to stop shorting. Seriously, a short circuit is not the problem.

I compare anti-shorting these arguments to be anti-American. That's how much I feel about this issue. Investors can make money when stocks rise. . . Why can not investors make money when stocks go down? Let's be honest. Investors who short stocks did not create the real estate problems. Not started the mortgage and credit crisis. They did not cause banks to cancel hundreds of billions of bad loans.

All short-sellers did was to turn a profit. If you were wrong had lost a lot of money. (And my guess is that would not look up at the Capitol for ransom). But they were right and made much money. Let ask, what is wrong with that?

If the government thinks that this fight against the ban on shorting is a solution, who know nothing about free market.

Ok, I'm off my soap box now.

More importantly, I want to tell why they should worry about this provision.

Do you have a bank account to trade stocks and options? If so, this anti-short rule and you are affected. Do not believe me? Just keep reading.

Because of this prohibition of shares shorted SEC – the brokerage firms are changing the way they operate. Are limiting what you as a customer can do in your account. Are limiting the types of operations you can perform.

Let me give you an example. If you sell call options (which gives someone the right to buy shares that at a fixed price) could end up cutting the material. That means you are breaking the law.

Do you buy put options?

Many investors used put options to profit from falling share prices or to cover your portfolio. I know I do. If you want to exercise that option, you may be breaking the law.

If you own put options, it changes the way you trade. And most importantly, perhaps, changes in value.

Different companies are involved of these problems in different ways.

Some are limiting the ability to exercise the options at all. Others only allow you to exercise an option unless short in the account (even for a split second). Oh, and God forbid that you are assigned a put or call. Your company will be forced to cover the position immediately. Knowing how it works, I will probably go ahead and do that for you – then you say later.

I do not believe me?

Call or e-mail from your brokerage firm. Ask a simple question. "How do you fight against ESA provisions impact short selling my options?"

Scary is not it?

Now, before I said the policy of the SEC has global implications. Unfortunately, countries around the world are adopting the anti-short position. They are blaming the vendor short and threatening anyone, tar and feather me think of shorting stocks. London did the same shortly after the announcement of the SEC. I'm reading the exchanges in Asia do the same thing.

Of all the things that we could export, this is what worst in history.

And just to put to rest all market observers who believe that this anti-short provision is to help. . . will not. Markets have fallen from this new provision to combat the short was launched. Do you know what is the worst industry group has been doing? Finance. (If not so serious I'd be laughing now.)

One last fact.

General Motors has been added to the anti-short list recently. Apparently own of a bank or a bank (the logic is a bit blurry). The action did fall more than 11% the day after being added to the list. I guess not is a short in populations of great help. This shows that a company can save an industry that horrible struggle.

Brian Mikes is the editor of the Dynamic Wealth Report, a free investment newsletter that offers investment ideas and news you can’t get from the mainstream investment press. Brian and his team bring decades of Wall Street and Silicon Valley experience to help you discover profitable trading ideas you can use today.

In addition to short selling stock trade ideas, you’ll also receive FREE updates on penny stocks, options, ETFs, commodities and currencies that offer the best opportunity for immediate profit. Click here to start your free subscription today:

If stock accounts can be garnished?

If there is an executable statement in a state and their banking institution is in another state, may be connect? On the other hand, are securities accounts such as e-commerce that can be mounted?

Bank accounts in other states may be garnished. The creditor only presents a "foreign sentence" with the state courts and go after their money. Stocks can be seized if it has completely. If part of an IRA or a fund guarantee of income are exempt. The creditor is entitled to take any income that is owed, or property held by another person. In this case the action is owned by the corporation, so that the creditor is the company to take reservations.

Stock Trading Strategy You Do Not Want To Hear

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Post a Comment

Your email is never shared. Required fields are marked *