help''''''?

Question

Will i see my profit the next day if, I buy stocks today and sell them the same day. how long will it takes for me to get my profit from my sell?. I want to reinvest my profit to buy more stocks and repeat the process over and over again.

Answer 1

It all depends.

For a cash account, you settle a few days afterwards, which is why most people have a margin acct.

With a margin account, you can buy/sell stock and have the money available to use once. Buy that morning, sell it. Or sell something and buy something the same day. You can do this 4 times in a five day period.

However, if you typically buy/sell your stocks over and over again, then you'll be identified as a pattern day trader. Pattern day traders need to have a minimum of $25K in their account. And depending on brokerage firm will typically get 4X the margin available for trading. Thus, you can buy/sell 4X in a day the amount available in your account.

Be sure to know what you're doing as the faster you can invest, the faster you can lose your money if you don't know what you're doing.

Check with your brokerage firm (it's usually in the fine print around the margin pages) to see what your firm's policies are.

Hope that helps!

Answer 2

your "cash" goes into holding while the trade completes (transfer of stocks or options settle at the agreed upon price). Most brokers will front you the trade price by the end of the business day in order for you to re-roll your capital into further investments; however, if you're pulling cash out of your trades account it could take at least a week for that cash to become available.