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Last post 05-15-2008, 12:58 AM by Stardust. 9 replies.
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  •  05-07-2008, 12:35 AM 28620

    After you buy a stock, how long before you can sell it?

    Reply Quote
       I know there is a Regulation T rule which states something about T + 3 which means the trading date plus three days. Does that mean that if you buy a stock on Monday then you can not sell the stock until Friday. And then what about the time. What if you buy the stock late Monday afternoon. Could you then still sell the stock first thing Friday morning or have to wait until the exact time Friday afternoon. It's all very confusing.  

  •  05-07-2008, 12:42 AM 28621 in reply to 28620

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote
    There is absolutely no such rule!   You can sell your stock anytime you want.   If you are a day trader and you have less than 25K in your trading account, then you are not allowed to sell the stock on the same day that you bought it.  It's that simple! 

  •  05-07-2008, 12:50 AM 28622 in reply to 28620

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote

    You can sell a stock as soon as you buy it.  You don't have to wait any time, though you need to understand the rules if you buy and sell the same day (a day trade) more than three positions within 5-days (pattern day trading).  T+3 has to do with settlement of funds from a sale.  Funds from a sale are available 3 market day after the sale (trade) day.  This is important if you have a cash account rather than a margin account.

     

  •  05-07-2008, 4:30 AM 28629 in reply to 28622

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote
    Preacher is correct.

    However, brokers seem to have different ideas about what action they will take against a trader with less than 25k in his/her account who is classified as a pattern day trader.

    Another broker I'm with would ban any additional day trades for a week, but a Zecco CSR told me they stop all margin trading for 90 days "due to unmet day trading call".

    I've been at this a few years now, and I have to admit I'm still not in the know on exactly how one meets a day trading call.

    Perhaps if I promise not to be such a bad boy again?

    Anyway, I'm glad I opened this account on a trial basis, as it seems I will learn something new.

    When I'm enlightened on how to meet a day trading call, I will be happy to share. Or by all means, someone please jump in and tell me.

    Cheers.
    ----------------
    OK, further to this, here's how to meet a "daytrade margin call":
    • Deposit of Cash in the entire amount of the call.
    • Deposit of margin eligible security(ies) valued at 1 1/3 times the amount of the call.

    I find it quite bizarre that day trading is linked to margin this way.

    I am getting closer to declaring this account a failed trial, in which case funds will be moving the other way in their entirety.

  •  05-11-2008, 9:50 AM 28888 in reply to 28621

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote

    Stardust:
    There is absolutely no such rule!   You can sell your stock anytime you want.   If you are a day trader and you have less than 25K in your trading account, then you are not allowed to sell the stock on the same day that you bought it.  It's that simple! 

    You don't have to have 25,000 to buy and sell a stock in the sameday.

  •  05-12-2008, 4:23 PM 28959 in reply to 28888

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote
    There is absolutely nothing wrong with my answer!   I said that "if you are a day trader and you have less than 25K, then you are not allowed to sell stock on the same day that you just bought it" which is absolutely true.   Of course, it goes without saying that if you are not a day trader, then you don't have to have 25K to buy and sell stock in the same day.

  •  05-12-2008, 11:24 PM 28978 in reply to 28959

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote
    Actually specifying pattern day trader in your original post would have been more accurate, it did sound like you meant any day trading requires it.

  •  05-12-2008, 11:24 PM 28979 in reply to 28959

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote
    DELETED - the system posted my reply twice...

  •  05-15-2008, 12:41 AM 29117 in reply to 28978

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote

    Is this in the user agreement when you sign up with Zecco or something?? Cuz I just opened my account with <25,000 and had no idea about this rule so I did 3 same-stock day  trades today... my trading privileges have not been blocked yet

  •  05-15-2008, 12:58 AM 29121 in reply to 29117

    Re: After you buy a stock, how long before you can sell it?

    Reply Quote
    otavio:

    Is this in the user agreement when you sign up with Zecco or something?? Cuz I just opened my account with <25,000 and had no idea about this rule so I did 3 same-stock day  trades today... my trading privileges have not been blocked yet



    You are safe with 3 day trades within 5 business days.  If you make the fourth one, your account will be flagged as a pattern day trader, then you will need 25K.  If you don't have 25K, your account will be treated as a cash account for 90 days - it's really no big deal if you are not borrowing any money on margin!   These day trading rules is like those Tempo Directives in StarTrek.   It's big headache if you are trying to follow them, but if you just ignore them, it's really no big deal (assuming that you are not borrowing money).
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