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AbnormalReturns
11-17-2014,
Is this a Good faith violation?

On Monday morning, Cash available to trade = $20,000.00

On Monday morning, customer buys XYZ stock for $10,000.
Later, on the same day, customer sells XYZ stock netting $10,500 in cash account proceeds.
Later, on the same day, customer buys ABC stock for $20,000.
Later, on the same day, customer sells ABC stock netting $20,500 in cash account proceeds.
(Now, Cash available to trade = $21,000.00)
Later, on the same day, customer buys ABC stock again for $20,000.
Later, on the same day, customer sells ABC stock netting $20,500 in cash account proceeds.
(Now, Cash available to trade = $21,500.00)

SwingKong01
11-17-2014,
Some of the others might answer your question as I am a little confused by it. First right off, you are not going to be able to spend 10k and make 500 off of it in one day. I can spend 120k and make 500 off of it as I have done that 3 or 4 times a day here.

SwingKong01
11-17-2014,
What you're doing is daytrading. If you're in the U.S., then you're done trading for the entire week, because one more trade and you'll have broken the law. Why? Only 3 daytrades are allowed in a five-day rolling period unless you have more than $25k cash.

Also, if you happen to have a cash-only account (and I don't know why you would if you have $20k to spend), then you're also guilty of free-riding which is an additional big no-no.