SEC Fines? Short Sales?

J

Johnny Walker

"Got my first Fine from the SEC. Did an Illegal short sale. I didn't know i did it but they fined me $25 dollars plus my profits on the stock which was $35. I think, besides opening orders, i should stay away from short sales from now on. They cost more because they are billable orders and now i get greif from this. Im sure i still had to pay the commission of 2 cents to my broker (buy and sell) and the 1 cent to the specialist plus another 80 cents for SEC fees and BAM...im out $76 bucks...as if monday wasnt bad enough."

I read this quote on some ones trading journal and would appreciate it if some one could explain to how to do a shortsale without getting fined? (Nasdaq and NYSE) I have a basic scottrade retail account and usually just stick to trading hard commodities.

Thank You, in advance for the replies!
 
#1) quit using scottrade.... wtf? you're the second person in as many days who said they used this still - ack!

#2) What stock and ECN were you on? (if you can choose an ECN, that is)
 
I dont think I can choose an ECN, I have never seen the option to choose this. I was planning on shorting MSFT. I only trade stocks once every couple months. Commodities are my main trading tool.
 
well, like I said, get out of scottrade

I just started shorting limits on arca on downticks today actually. The word is around ET is that you can do so on arca w/ no probs. So far so good.

I'm going to bed - only 6.75 hrs to opening bell ack!
 
Scottrade should have systems in place to prevent illegal short sales. I would ask for reimbursement or move to another broker..

Nick
 
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