Very green here need some info on when funds are available

[ciswjtbn23]

I have been watching a stock for some time and it like most stocks has a trading range of approx $.25 between its high and low of the day.

On Day 1 if I buy 1000 shares of XYZ stock at $5 a share in the a.m. then sell those same shares on the same day making a small profit off of that intraday high and low (theoretically $250 profit) can I do the same trade on Day 2? Before you answer read on...

[CUVXN]

I understand there is 3 days for settlement but since I wouldnt be looking to take literal possession of the money (initial $5000 investment) via withdrawal, request a check issued etc could I trade on that same $5k (1000 shares) to buy and sell XYZ on Day 2?

(note this is not a margin account either, just a basic individual acct)

[cultwydd62]

No, you can BUY with unsettled funds, but you can't sell until the purchase is technically paid for (when your original sell settles).

So, for example, if you originally bought/sold on Monday, you could buy again on Tuesday, but you can't sell those shares until Thursday (without getting a slap on the wrist). This is assuming you're using the same money over and over again. If you use just a third of your money, you could buy/sell one day, then use another third of your money the next day, etc.

[czrxijgly]

You may also need to be concerned about running afoul of day trading rules, which require a $25,000 balance in your trading account.