Have you received a Good Faith Violation letter in your Account Records? I did, but I was never notified any other way, like email! Now, how many people god to Account Records daily? Weekly? Monthly? At all! I stumbled on these while trying to confirm something else.
Now the letter itself is VERY misleading AND does NOT identify the violation so you can avoid another in the future. If you didn't already know, you are allowed no more than 3 violations of this type in a 365 day period, after which your trading will be suspended. Nice! Especially when you aren't notified! Now, I discovered that my violations were all because I did both a sale of an option (Opened a covered call position) in my retirement account and later that day bought it back (Closed the position). That is a no-no and you wouldn't be able to find it given the text in the letter which has to do with selling a security after it was bought earlier. To make it simple, the violation is because you did a DAY TRADE, i.e., you bought-sold a security or sold-bought an options against the same security on the same day! Why didn't they just tell you that? Didn't know that if you accidently submitted an order against an one of your other accounts instead of the one you desired and then quickly closed it to clean up your mistake that you committed day trading and get a red card. Ha. So, watch out and NEVER do a day trade.
What disturbed me was that the letter is dated the day after the transactions that caused the problem and it doesn't tell you which transactions. Very poor letter. Very poor notification (or none). Be careful.
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