Stock Trading and Other Things

What are the basic rules for how OFTEN you can trade stock?

I was doing some research on "Day Trading" and it seems like you have to be an offical "day trader" to do day trading.

I always thought that you can buy and sell stock anytime you want. I didn't know there were rules for how long you can keep it or how quick you can sell after you buy.

So what are the rules? If I'm not a day trader, does this mean I can't buy shares and sell them later that day if the price goes up? How long do I have to hold stock after I buy it?

Public Comments

1. If you have a margin account. Then you can buy and sell stocks on the same day. But to do day-trading. You need to have more than $25,000 in your account. Or else you won't be allowed to day-trade.

But if you open a cash only account. Then you have to wait up to 3 days for your sell order to be settled, before you can use the money from the sale for another purchase.

2. Day trading inorder to avod loses to both the parties that is sellers and buyers is governed by certain rules and regulations.