We had a discussion of the 30 day wash rule on
this board last week. I am afraid that people came
away from the discussion with a misunderstanding of
the 30 day wash rule.
In essence, the 30 day
wash rule states that an investor does NOT lose any
tax advantage if he buys (within 30 days) a stock
that he has sold for the capital loss.
Investors might need to be extra aware of the 30 day wash
rule if they sell a stock for a loss in December. If
you again buy the stock in January, then the tax loss
of the December sale shifts to the next tax year. I
am being general here. There are more nuances and
The 30 day wash rule does cause a rearrangement of
the declaration of a capital gain/loss. Read page 48
of IRS publication 550 for details.
this site for the corresponding IRS
Also, reference post 2120 on this message board for an
example of the 30 day wash rule.
NOT fear buying any stock because you have recently
sold the stock for a loss. But be aware if the stock
was sold in December.
Is a good idea and prudent business. Do you have
any idea if the other OLB have any bad debt exposure
by allowing someone to trade without real money.
Somebody could run up a big bill in a week to 10 days
waiting for the check to clear if it comes. I think SWS
should be commended for imposing reasonable fiscal
The " 10 days " is only for new clients that want
to open a new account and are trying to do that with
a personal check.......
If you dont like to
wait the 10 days is easy.....
a) Send a MONEY
b) Send a BANK CHECK
c) or better---- a WIRE
They mentioned it but does anyone know what it
does? If this has to do with Online trading, why wait
for it to complete since SWS online's business is
working. If they are waiting for CSS to complete and
losing customers to other OLBs then they are doing this
the wrong way. Look at EGRP and SCH when they had all
those down time where clients weren't able to trade,
didn't matter cuz they still made a bundle of cash this
quarter and clients still stuck to them. SO why wait for
CSS and use what they have now? If more clients join,
then that's ok cuz CSS would be complete by then. They
don't have enough clients for Online trading to cause
an outage right now.
Also as I mentioned,
they need to do some kind of stock split to make this
more attractive. When I opened an account with SWS, I
had to wait ten days before I can start trading cuz
they are waiting for the check to clear. This is wrong
and other OLBs would let you trade once the
application and check is in. Cuz if you burn them, they got
your ssn and all pertinent info to go after you. But
SWS wants to play it safe, and in doing so you are
pissing clients to go elsewhere and that how I felt. Why
would I want to trade with them when I can get JBOH to
open one right away and get the 1st ten trades for
I believe in the company but they need to be a
little more aggressive and take chances. If you can't
trust the clients and have to wait for the check to
clear in ten days, well you just lost him to some other
OLBs. And many would love to take your business.
SWS is very profitable with huge assets no
doubt,however,they do not really qualitify as a major player in the
OLB arena. They have about 5000 online accounts vs.
Schwab of 2.5 million online acconnts,or NDB 600k. There
are plenty of traditional brokers with very low PE
that are highly profitable but trading at a discount,i
hope SWS can sign up more accounts on their online
brokerage business,I for one am transfering my account to
SWS,and hope you all can do the same.
I read somewhere that the CEO of AMTD was
thinking about a secondary offering. He was asked if he
should some NITE like EGRP did. His answer was NO WAY
that he would rather Borrow the money than sell
This people know what they're doing. Selling Nite is
not what the are doing.
As soon as SWS
announces that they sold their Nite, then i am gone. Profit
taking in NITE would be OK with me(about 10% or
NITE is a goldmine out there.