[MintelIE]

It'll dead cat bounce a few times, the smart money buys it on an up day and sells before noon.

[aparsons]

Is that even legal? I thought you had to hold stocks for 3 days for transactions to settle?

[RandomBacon]

You only have to wait three days for it to settle if you want to use those funds to buy a different stock.

[aparsons]

Thanks for explaining. Does this mean that each time a “day trader” makes a sale of $N, the minimum cash they hold over the next 3 days must be at least $N? Or does the exchange not make the cash available for 3 days?

Also, can the same stock be re-bought within 3 days?

I’ve seen a lot if different takes on these issues, and an unsure what to believe.

[jnwatson]

When you sign up for a brokerage account, you select whether you want a “cash” or “margin” account. In a margin account, the brokerage essentially loans you the money until the sale clears.

Day traders use margin accounts.

You can indeed buy the same stock back, but it has tax implications. Look up “wash rules”.

[aparsons]

Thanks for explaining

[arthurcolle]

only in a cash account

[snazz]

Huh? Day-trading is a thing. Is this stock somehow special?

[aparsons]

Not sure why an honest question is getting downvoted, but you do you, HN.