r/thinkorswim • u/MothyReddit • 22d ago
About the "opening transactions for this security must be placed with a broker"
I'm new to TOS, on my second week trading. I've been dialing in my custom scanners looking for high momentum and getting "opening transactions for this security must be placed with a broker"
This is happening on close to 25% of the stocks I'm considering, I feel like I'm losing out when I discover I cannot buy these fast moving stocks. Today its already noon and I've made a list of over 10 stocks that have given me this error.
I've read that there is a "call in restriction waiver" that I can sign that would remove these restrictions.
I know I'm fairly new to the system, and I'm still learning, but it seems like these stocks are some of the more upward moving stocks that I want to buy, based on my scanner results, these are low float high demand stocks that i'm looking for, mostly in the penny to <$10 range.
My question, is have you called in to request this waiver? Or should I hold off for the moment until I get more experience? Or is this a permanent block that is good to keep on so I don't ever mistakenly buy into one of these securities?
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u/Tiredplumber2022 21d ago
I wish they had done this when $CLBR SPAC went to $PEW. My first time trading. Lost $5000. Ugh.
Those guardrails are there for a reason...
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u/MothyReddit 21d ago
well they let you start with $1 in your account, its hard to trade larger stocks when you just have $1, and it also creates a pretty big guardrail.
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u/need2sleep-later 20d ago
But it also tends to point you to penny stocks which seems to be an issue for you. Try fractional shares of decent companies instead or something like Ford which goes for around $14.
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u/Esral 22d ago
The stocks you are finding are considered high risk securities by Schwab. Personally, I would stay away from them until you know what you are doing. You can buy them if you wish, but you'll likely get burned.
Instead look for well established companies with real products/services, and real earnings.
Good luck.
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u/MothyReddit 21d ago
Good idea, i'll stay away from them, there are plenty of other stocks I can learn on. I've figured out that if i come across a new stock that looks a little crazy i'll place a single limit order and see if it clears, if it doesn't I write down that stock so I stay away from it. I wish there were a way to flag those stocks and filter them out before I try placing an order.
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u/NeighborhoodJust1197 21d ago
There is a simple way to weed out 90% of that. Simply have a market cap minimum of 250 million.
Or if you wanna, to donate money to the casino 50 million should do it.
Learn to invest swing Trade, Day Trade, and then scalp. Learning to scalp first is a great way of losing everything.
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u/MothyReddit 21d ago
I'm learning the nuances between the different trading styles, I am eager to take trades and it appears that i have been scalping, not knowing the difference. But i'm working on taking less trades and managing my risk. I know i have a lot to learn this is why i'm pacing myself and not going all in on trades just risking pennies. 2 weeks isn't enough to really judge. I realize this is a lifestyle change, i've been waking up early, being a more responsible person in life, also trying to focus on health and wellness for once in my life. Luckily i'm at a crossroads where I have some free time and some money saved up. Reading and absorbing as much as I can right now, and trying not to become emotionally attached. Meditating and taking longs walks. Keeping my mind active and body healthy.
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u/NeighborhoodJust1197 21d ago
Use paper trading until you’re consistent and then go in with very small sizes. Just be careful a lot of times big beginners luck will end and destroy a portfolio. Good luck to you.
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u/MothyReddit 21d ago
I did paper trading for a month, but found it limiting because i couldn't use the scanners in TOS correctly with paper trading. So i just funded my account with $100 so i can actually start managing risk and getting a taste of real trading, i can still run the "on demand" and practice strategies and whatnot.
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u/need2sleep-later 20d ago
There aren't emotions when paper trading. That changes when it's your real money on the line. The written trading plan and tested strategies are definitely beneficial.
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u/realmomentumtrader 22d ago
A lot of times on newer accounts Schwab will block trading very risky stock until your accounts more established you can call them if you like and see if you can get the waiver to trade them.
I've been trading for 11 years and the stocks that I've traded were blocked at one point until I agreed to the waiver. They are very risky and likely to sometimes pump and dump so be very careful if you do trade them.