Trade King Day Trader Account Restriction

So, again, I’ve been in and out of FAS and FAZ more than I want to recount in this blog. In fact, I have a margin account with TradeKing and I’ve been playing FAS and FAZ so much that they labeled me a day trader! I’m not sure how many of you have had this happen, but it sucks. There is apparently no way that they can remove the account restriction because it’s a federal regulation. I asked for a one-time exception and they said NO. For those of you who were wondering, they do this type of restriction at the SSN level, so you can’t just open a new account.

It’s probably a good thing because I was trading up a storm. I’m still up about 125%, but most of that was because of a good multi-day hold on FAS. I just bought FAZ around the market close at 20.58. I think that we need to have a bit of a downward correction here soon. We’ve just run up too fast. Three up weeks in a row, plus a strong month of March. I think that April might be a down month considering the run up and earnings are also coming out. I don’t want to hold FAZ very long, though. These stocks are just too scary!

Good luck out there!