Day trading question?

I'm putting $25,000 in my account and I'm using Robinhood gold. 

I know that if I buy a stock and sell it today, I don't have to wait for the funds to settle. They are available right away.

if I have $25,000 worth of cash in my Robinhood account, and I have Robinhood gold, theoretically could I buy $25,000 worth of ABC company, and sell $27,000 worth of ABC company in the same day? And do that same transaction five times in the same day without getting marked as a pattern day trader?  

I just want to make sure that I can day trade as many times as I want with Robinhood gold, and not have to wait for funds to be settled or anything like that? 

4 Answers

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  • 3 months ago

    I am not familiar with Robinhood accounts, but I am confident they have to follow the same rules and regulations that other brokerages have to follow.

    <<<I know that if I buy a stock and sell it today, I don't have to wait for the funds to settle. They are available right away.>>>

    That is true in any margin account and any cash account that has not violated the free-riding rule, assuming by available you mean available to buy stock. (The funds will not be available for withdrawal until the funds settle.)

    <<<if I have $25,000 worth of cash in my Robinhood account, and I have Robinhood gold, theoretically could I buy $25,000 worth of ABC company, and sell $27,000 worth of ABC company in the same day?>>> 

    Yes, if the stock price has gone up to $27,000 or more. If it is a margin account you could have bought more than $25,000 worth of stock.

    <<<And do that same transaction five times in the same day without getting marked as a pattern day trader? >>>

    No, you would be marked as a pattern day trader, but as long as you keep over $25,000 worth of assets in your account there is no disadvantage to being marked as a pattern day trader.

  • Anonymous
    3 months ago

    "theoretically could I buy $25,000 worth of ABC company, and sell $27,000 worth of ABC company in the same day?"    Yes.

    "And do that same transaction five times in the same day"   No.

    You need to know and understand the Free Riding rule.   T + 3. 

    If you don't, you will be put in time out so fast your head will spin.

  • 3 months ago

    Contact their customer support. See the bottom of the page for the link below

  • Anonymous
    3 months ago

    If you are lucky, you will quit when you get down to $15k. And it won't take long.

    Yes, evidence you have the emotional maturity of a 14 year old.

    Being broke. LOL.  I could buy you 50 times over.

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